Accelerating Feedstock Cost Send BOHO & RINs Higher

Accelerating Feedstock Cost Send BOHO & RINs Higher

Soybean oil prices closed the day more than a penny per pound higher, gaining 7.4 percent in value for the week.  Soybean oil prices are 13.5 percent higher than they were a year ago. Heating oil saw strong gains over the week as well but was limited on preventing the bean oil/heating oil (BOHO) spread from advancing higher.  The BOHO gained 5.2 percent in value during the week, reaching its highest level in more than a week and closing the week at $1.31 per gallon.

With the BOHO advancing, the biomass-based diesel 2020 RINs appreciated five percent and closed the week at 79.25 cents, a two and half week high.  Ethanol 2020 RINs gained four percent in value for the week. California’s LCFS credit was down two percent this week and three percent below pricing a year ago.  The LCFS credit is feeling pressure from reduced gasoline consumption and increased renewable capacity forecast to be coming online.  Within the LCFS program, most of the deficits are generated on the gasoline side of the program with a majority of the credits coming from the diesel portion of the program.  Increased consumption of renewable diesel over the next several years will have a sizable impact on credit generation, providing the planned capacity additions arrive and there is enough feedstock to satisfy demand.

Blog

11.22.2024

Biodiesel margins rise, but window of opportunity limited

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

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

Bloodmeal largest price mover week on week; November cattle on feed higher

US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...

Latest Tweets