Oil Share of Board Crush Rises Above 42 Percent

Oil Share of Board Crush Rises Above 42 Percent

**Note – Amanda Luhavalja will be out of the office until Thursday March 21

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.

The BOHO spread climbed 20% last week, closing its highest level since mid-January. Advancing soybean oil futures did most of the lifting in propelling the BOHO higher. Soybean oil futures at the Chicago Board of Trade (CBOT) closed at 49.42 cents per pound, reaching their highest level since December 2023.

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