Biodiesel producers are working in a challenging margin environment these days. The soybean oil-to-heating oil (BOHO) spread is often used as a measure of the profitability of producing biodiesel from soybean oil. Most other feedstock choices tend to follow the BOHO spread.
A higher BOHO indicates it is more expensive to produce biodiesel from soybean oil. When the BOHO spread is high, RIN values generally climb to help incentivize production. Without RINs, producing biodiesel at these levels would not be possible.
The market is no longer in this scenario. Soybean oil and feedstock prices have dropped significantly in the past several weeks. The BOHO has fallen from $2.30 per gallon in July to under a dollar per gallon last Friday.
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02.04.2025
Chicago, Gulf animal fats and oils markets strengthen despite ongoing uncertainty
The US animal fats and oils markets were stable to higher on Tuesday February 4, as Chicago market activity saw a notable uptick throughout the day.
Six railcars...
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Light trade volume leaves most US animal protein prices flat
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Ruminant meat and bonemeal, Missouri River, was reported as steady from Monday February...
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December US soybean crush, corn consumption up month on month
US soybean crush above monthly, yearly levels
Soybeans crushed for crude oil totaled 218 million bushels in December 2024, up by 7% from November and by 4% from...