Rising feedstock costs reigned in margins last week, ending three weeks of margin improvement that had seen values push above break-even levels. Soybean oil prices scrambled three percent higher to 68 cents per pound, while ULSD futures declined four percent.
The bean oil/heating oil spread (BOHO), which measures the profitability of producing biodiesel from soybean oil, climbed 14 percent to $2.18 per gallon. The higher the spread, the more costly production becomes. RIN values generally increase to offset rising production cost.
Biodiesel RIN values increased seven percent last week, approximately half the increase seen in the BOHO spread, suggesting RINs could continue higher if the BOHO does not adjust lower. The value of the 2022 biodiesel RIN relative to the 2021 RIN improved last week. The 2021 RIN has been trading at a premium to the 2022…
12.20.2024
45z guidance fails to appear; government scrambles to pass spending bill
The US government spending bill failed twice in as many days. If a deal is not reached by midnight on Friday December 20, some federal services will...
12.20.2024
US animal fats and oils end week softer across the board ahead of holiday slowdown
Prices for US animal fats and oils ended the week on a lower note on Friday December 20, with most markets trending downward ahead of the upcoming holiday week,...
12.20.2024
December cattle on feed down on month, year
Most US animal protein prices were rangebound for the week, though in wider ranges due to the impending Christmas and New Year's holiday closures.
The only significant price...