EPA Continues to Struggle with 2021 Blending Requirements

Soybean oil pivoted higher, advancing 1.56 cents to 66.69 cents per pound for July delivery at the Chicago Board of Trade. Soybean oil prices hit a five-day high while heating oil values were largely unchanged.  Soybean oil is up 142 percent in value from last year and today’s increase was enough to lift the bean oil/heating oil (BOHO) spread past the last two days of decline. 

RINs failed to notice the increase in the BOHO spread as biodiesel RINs slipped a ½ cent in value with the 2021 RIN settling at $1.91.  The market continues to seek clarity on what demand there will be from the market during 2021 and beyond.  EPA has failed to deliver the 2021 RVO’s but has leaked that the next two years may look like 2020 in design. 

This appears to be right out of the EPA’s 2013 playbook when RVO’s for 2013 were not delivered until August of…