The bean oil/heating oil (BOHO) spread is used as a measure of profitability in the production of biodiesel and renewable diesel using soybean oil as the feedstock. A rising BOHO indicates market production of soybean oil-based biofuel is becoming more expensive. RIN prices tend to rise along with the BOHO to offset the cost and incentivize production.

To end this week, the BOHO increased 22 percent to 75 cents per gallon, indicating a more expensive production environment. Soybean oil costs increased two percent while ULSD prices fell two percent. RINs edged higher across the week, with the D4 RIN rising three percent to 46.5 cents per gallon.

It has been a rough year for RIN values, which are down 71 percent from a year ago and have fallen 40 percent since the start of the year. Comparatively, the BOHO is 53 percent below year ago levels and down 22 percent from the first of the year.

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