Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
The BOHO spread is often used a measure of profitability in biodiesel and renewable diesel (RD) production. A falling BOHO spread indicates production is becoming less expensive. Renewable Identification Number (RIN) prices tend to follow the BOHO spread’s movement.
RIN prices declined as the BOHO spread reached multi-month lows. Biodiesel 2024 (B24) RINs fell to their lowest level since September 19.
Biodiesel production margins have improved, but producers realize the window of opportunity is likely small for taking advantage of the move.
The $1-per-gallon blenders tax credit (BTC) lasts until the end of 2024 and will then be replaced by the 45Z Clean Fuel Production Tax Credit (CFPC).
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11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
11.22.2024
Gulf prices average higher despite weeklong declines in SBO
For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...
11.22.2024
Bloodmeal largest price mover week on week; November cattle on feed higher
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