ULSD price hits lowest level since December 2021, helping raise BOHO spread to 1-month high

ULSD price hits lowest level since December 2021, helping raise BOHO spread to 1-month high

Ultra-low-sulfur diesel (ULSD) futures on the Chicago Mercantile Exchange (CME) closed at the lowest level since December 2021 and combined with rising soybean oil futures to lift the bean oil/heating oil (BOHO) spread to a one-month high on Wednesday August 28. Soybean oil futures posted their highest close in two weeks.

Falling ULSD prices have a negative impact on renewable fuels, making them less competitive relative to diesel and discouraging blending. To offset the negative impact of lower ULSD prices and a rising BOHO spread, renewable identification numbers (RINs) — which are assigned to biofuels and traded — often rise to compensate.

RIN prices climbed to a two-week high of approximately 57 cents per RIN. Biodiesel producers reported steady prices for the most part compared with last week. Midwest biodiesel prices were mostly reported trading at $3.85-4.00 per gallon for B100 biodiesel.

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!

Blog

12.20.2024

45z guidance fails to appear; government scrambles to pass spending bill

45z guidance fails to appear; government scrambles to pass spending bill

The US government spending bill failed twice in as many days. If a deal is not reached by midnight on Friday December 20, some federal services will...

12.20.2024

US animal fats and oils end week softer across the board ahead of holiday slowdown

US animal fats and oils end week softer across the board ahead of holiday slowdown

Prices for US animal fats and oils ended the week on a lower note on Friday December 20, with most markets trending downward ahead of the upcoming holiday week,...

12.20.2024

December cattle on feed down on month, year

December cattle on feed down on month, year

Most US animal protein prices were rangebound for the week, though in wider ranges due to the impending Christmas and New Year's holiday closures.

The only significant price...

Latest Tweets