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 economics of producing biodiesel from soybean oil. Renewable identification numbers (RINs) commonly move with the BOHO spread, but this week, RINs have been slow to react.

On Friday July 5, the BOHO reached its highest level since January 2, with soybean oil prices jumping to heights not seen since December 2023. A rising BOHO indicates it is becoming more expensive to produce biodiesel from soyoil; RIN values often climb to help incentivize biodiesel production.

This incentivization is not following at the same rate as the BOHO economics might indicate. RIN prices are up by approximately 15%, relative to the 45% increase in the BOHO.

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