07.05.2024
US BOHO spread rises 45%; RINs not keeping pace
The soybean oil/heating oil spread (BOHO) in the US rocketed 45% higher this week on rising soybean oil costs. The BOHO is a common metric used to gauge the...
Please note: Fastmarkets will not publish an animal fats bulletin on Thursday July 4 due to the Independence Day holiday in the US. We will resume our domestic market coverage on Friday July 5.
Distiller’s corn oil (DCO) traded higher on Wednesday July 3 into the Manly, Iowa, market and out of the Missouri River market.
Prices are supported by the surging soybean oil (SBO) futures market. The most liquid contract, December, was up 111 basis points on Wednesday, settling at 47.91 cents per lb.
The stronger SBO market has pushed offers for DCO as high as 50 cents per lb FOB for July and August shipment, but thus far buyers have not bid on reportable volume at these prices.
Bids for DCO delivered to the US Gulf at 50 cents per lb are a good match for 50 cents per lb FOB Missouri River or FOB Illinois/Wisconsin.
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