11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
Hemp drying is a monumental task for any producer, but scaled operations have their own set of challenges that are similar to other ag sectors, like tobacco. Grain, on the other hand, isn’t really a good reference, because grain moisture isn’t as high as hemp is coming out of the field. Hemp plants can contain 80% moisture at harvest, and while farmers for one reason or another may harvest corn above 20%, generally producers are dumping loads that are less than 20%, in the high teens. Hempseed generally follows suit, but is ultimately stored at lower moisture, below 10%.
Costs for hemp drying reflect the more extreme moisture levels involved, as well the labor to handle it. There are also many different commercial processes that range from repurposed greenhouses, hop kilns and tobacco barns, as well as a range of commercial drying…