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…
05.03.2024
Biodiesel imports fall to 8-month low in March; exports rise to 3-month high
Biodiesel imported into the US fell in March for the first time in four months while biodiesel exported from the US reached a three-month high.
Import demand from...
05.03.2024
BFT, soybean oil weekly average prices tumble
For the week to Friday, prices were broadly lower compared with the prior week’s average. Packer bleachable fancy tallow was down by 2.2% from the prior week’s average on...
05.03.2024
US animal protein prices remain under pressure; soymeal rises
US animal protein prices were mixed in the week to Friday May 3 but showed no large movements, with multiple market participants traveling for the Petfood Forum in Kansas...