The biomass-based diesel market finds itself in a challenging environment. The soybean oil-to-heating oil (BOHO) spread is used as a measure of profitability in producing biodiesel and renewable diesel from soybean oil. Many feedstock choices tend to follow the BOHO spread.
A high, or rising BOHO spread, indicates it is, or becoming 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 economically feasible.
Year to date, the BOHO spread has fallen 42 percent as ULSD heating oil futures and soybean oil futures have moved in opposite directions. ULSD prices are up eight percent while soybean oil values are down six percent.
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05.09.2024
Michigan among growing list of US states incentivizing SAF
Following the passage of federal tax credits for production of sustainable aviation fuel (SAF), state governments across the US have been implementing tax credits of their own to secure...
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US fat exports hit multi-month high on shipments to Singapore
Four cars of packer bleachable fancy tallow (BFT) and four cars of choice white grease (CWG) traded higher on a Chicago basis on Thursday. Packer BFT was up to...
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Ruminant meat and bonemeal relative to CBOT soybean meal drops
US animal protein prices were steady on Thursday May 9 following multiple reports of limited trade.
Ruminant meat and bonemeal relative to soybean meal
Ruminant meat and bonemeal...