The rising bean oil/heating oil (BOHO) spread has been lending to higher RIN prices over the past couple weeks. This has improved B100 values and raised margins. Soybean oil prices have also moved higher but were unable to keep pace with the increase in biodiesel prices.
Margins are not where they need to be to incentivize further production on their own. This has led several producers to slow production during January. In February, additional plants will perform scheduled maintenance, which could help margins as supply slips lower.
As a side note, used cooking oil, which generally trades at a discount to soybean oil, was recently trading at a premium. Higher feedstock costs could take a bite out margins if there is not a corresponding rise in RIN values to offset the cost.
…
01.29.2025
DCO prices strengthen as output, ethanol production decline on week
Prices for US animal fats and oils held steady to higher on Wednesday January 29, with much of the day's trade concentrated in the distiller’s corn oil (DCO) markets.
01.29.2025
Automotive leather sector wary of potential US tariffs on Chinese goods
For most US hide sellers, the market remained quiet on Wednesday January 29, as Chinese tanners were away for their Lunar New Year holiday. But some activity persisted, particularly...
01.28.2025
US animal fats and oils Gulf markets show continued price strength amid tight conditions
The US animal fats and oils markets were stable to higher on Tuesday January 28, supported by ongoing discussions of strong demand.
The Gulf Coast region has experienced...