01.24.2025
Renderer BFT trades higher to close out the week
Renderer grade bleachable fancy tallow (BFT) traded up to 50 cents per lb Chicago on Friday January 24 in a five-car trade.
Prices into the Gulf were higher as well,...
Marketers of crude glycerin were reporting prices that were steady or higher prices following reduced biodiesel margins in the week ended Friday July 19.
Lower margins could lead to a lower supply of crude glycerin if biodiesel production slows as a result. Glycerin is a co-product of biodiesel production.
The bean oil/heating oil spread (BOHO) is an economic indicator that reflects the profitability of biodiesel production from soybean oil. When the spread expands, production economics become more difficult, requiring RIN prices to rise to further incentivize production.
Last week, the BOHO spread went up by 9% while RINs only managed to rise by 1% and margins narrowed. If margins continue to compress, there will be a reduction in crude glycerin supply.
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