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.
Distillers corn oil (DCO) traded higher today with strong demand coming from the feed sector. Feed buyers have started to pile into the DCO market, seeing a cheap ingredient relative to other products. The upward trend is likely to continue in the near term with DCO well priced relative to animal fats, soybean oil and corn. Today’s Illinois DCO is market is at an average of 71 percent, 18 points under the prior three year average for May.
Figure 1.
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