The grains market was caught off guard today when the USDA released their prospective planting estimates for corn and soybeans. Both came in well under market expectations, which led to limit up rallies in price for corn and soybeans.
The smaller planting outlook also further aggravated soybean oil prices into a 2.46 cents per pound rally of its own, pushing soybean oil prices for May delivery to 52.92 cents per pound. This happened as crude oil and ULSD values closed lower on the day. The bean oil/heating oil spread (BOHO) received a boost from the rise in soybean oil and closed 18 cents higher at $2.12 per gallon.
The rising BOHO spread snapped RIN values higher, with biodiesel RINs pushing eight cents higher on the day and threatening to re-test recent highs should soybean oil prices continue to rise.
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