The bean oil/heating oil spread (BOHO) in the US climbed by 23% in the week to Friday August 23 compared with the week prior, primarily due to rising soybean oil and feedstock costs. A rising BOHO signals a more challenging economic environment for biodiesel and renewable diesel production.
Soybean oil futures on the Chicago Board of Trade (CBOT) rose by 4% in the week to Friday, elevating feedstock costs for biofuel production, and prices for ultra-low-sulfur diesel (ULSD) declined by 1%, which also provided upward pressure on the BOHO spread.
Prices for soybean oil and other feedstocks used to produce biofuel have been down in recent weeks. Soybean oil futures posted a year-to-date high of 49.55 cents per lb on July 5 and have been trending lower ever since.
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09.17.2024
US glycerin prices rangebound amid market uncertainty
The US glycerin market remained rangebound in the week to Tuesday September 17, with prices for 80% crude and kosher crude glycerin steady to slightly higher. Biodiesel producers are...
09.17.2024
US animal fats and oils mostly stable; CWG edges higher on strong demand
The US animal fats and oils markets were stable to slightly higher on Tuesday September 17, with minimal trading as some sources cited “well-covered” positions for the month.
09.17.2024
US porcine, ruminant bloodmeal prices fall; USDA slightly raises forecast for GCAU count in 2024/25 [corrected]
Prices were rangebound for most items on the US animal proteins market on Tuesday September 17. The exceptions were bloodmeal in the Missouri River, Texas Panhandle and Indiana markets,...