Despite the move higher, D4 RINs are down 2% in value from the previous week. RIN prices are receiving support from the rising bean oil/heating oil (BOHO) spread, which is up 9% in the past week.
The BOHO spread measures the profitability for producing biodiesel from soybean oil. The higher the spread the more costly production. When the spread rises, RIN values generally increase to offset escalating production costs. The reverse tends to be true when the BOHO spread declines.
RINs are the currency of the Renewable Fuel Standard (RFS) and used to incentivize production. RIN prices are expected to rise to offset higher production costs and may continue to climb in the near-term if the BOHO spread remains elevated.
…
05.03.2024
Biodiesel imports fall to 8-month low in March; exports rise to 3-month high
Biodiesel imported into the US fell in March for the first time in four months while biodiesel exported from the US reached a three-month high.
Import demand from...
05.03.2024
BFT, soybean oil weekly average prices tumble
For the week to Friday, prices were broadly lower compared with the prior week’s average. Packer bleachable fancy tallow was down by 2.2% from the prior week’s average on...
05.03.2024
US animal protein prices remain under pressure; soymeal rises
US animal protein prices were mixed in the week to Friday May 3 but showed no large movements, with multiple market participants traveling for the Petfood Forum in Kansas...