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.
The protein market was quiet to close the week. The market remains well supported by the strong soybean meal market. The December contract closed up $4 today, settling at $386.40. The prior three-year average relative price for ruminant MBM FOB Missouri River is 68 percent for October, which would translate to a price of $261.21 FOB or $26 over the current market price. The low relative price to soybean meal and strong demand environment are suggestive of further price increases in the near term.
Figure 1.
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