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.

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