Rising feedstock costs reigned in margins last week, ending three weeks of margin improvement that had pushed values above break-even levels. Soybean oil prices scrambled three percent higher to 68 cents per pound last week, while ULSD futures declined four percent.
The bean oil/heating oil spread (BOHO), which measures the profitability of producing biodiesel from soybean oil, climbed 14 percent to $2.18 per gallon. The higher the spread, the more costly production becomes. RIN values generally increase to offset rising production cost.
Biodiesel RIN values climbed seven percent last week, approximately half the increase seen in the BOHO spread, suggesting RINs could continue higher if the BOHO does not adjust lower. The value of the 2022 biodiesel RIN relative to the 2021 RIN improved last week. The 2021 RIN has been trading at a premium to…
04.18.2024
Total RFS blending falls in March, domestic biodiesel blending increases
The Environmental Protection Agency (EPA) reported 1.66 billion gallons of renewable fuel blended within the nation’s transportation fuel pool during March. Blending was six percent below February and...
04.18.2024
EU UCO premium to US continues to grow
The US animal fats and oils market was mostly quiet on Thursday April 18, with a handful of price changes reported. Choice white grease (CWG) into the Missouri River...
04.18.2024
Ruminant meat and bonemeal price pressure in most regions
Price pressure was reported on several regions for meat and bone meal, ruminant and porcine items. Market sources said buyer pushback and light demand, with exception to the pet...