The bean oil/heating oil (BOHO) spread rallied 23% this week compared to the week prior. A rising BOHO signals a more challenging economic environment for biodiesel and renewable diesel production.
Rising soybean oil prices increased the price of feedstock producers this week. The Chicago Board of Trade (CBOT) showed the price of crude soybean oil futures closing at 41.47 cents per pound on Friday August 23. This was a 4% rise in soybean oil for the week and the highest price since August 12.
Ultra-low sulfur diesel (ULSD) prices edged 1% lower week on week, providing additional upward pressure on the BOHO spread. ULSD prices closed at $2.30 per gallon and have been trending lower with crude oil.
Renewable identification numbers (RINs) are the currency of the US Renewable Fuel Standard (RFS) and are used to incentivize biofuel production. RIN values generally rise or fall with the movement of the BOHO spread.
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02.04.2025
Chicago, Gulf animal fats and oils markets strengthen despite ongoing uncertainty
The US animal fats and oils markets were stable to higher on Tuesday February 4, as Chicago market activity saw a notable uptick throughout the day.
Six railcars...
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Light trade volume leaves most US animal protein prices flat
Light trade volume was reported in the US animal proteins markets for Tuesday February 4.
Ruminant meat and bonemeal, Missouri River, was reported as steady from Monday February...
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December US soybean crush, corn consumption up month on month
US soybean crush above monthly, yearly levels
Soybeans crushed for crude oil totaled 218 million bushels in December 2024, up by 7% from November and by 4% from...