September soybean oil prices closed the day down 1.15 cts/lb to 65.82 and December futures were down 1.12 cts/lb to 62.07, marking a two-day downturn that has shaved 2.66 cts/lb off of the September contract and 2.19 cts/lb from the December contract. ULSD traded higher, up 7.21 cts/gal on the September contract, moving the BOHO spread in a favorable direction for renewable producers.

Margins remain tight and using an assumption of 50 percent CDG soybean oil and 50 percent UCO, an unlikely mix but adequate to illustrate a point, renewable diesel margins finished last week at approximately 11 cts/gal, down from over a $1.00/gal in May and as much as $1.84/gal for the week ending July 15, 2022.

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