The biomass-based diesel market finds itself in a challenging environment. The soybean oil-to-heating oil (BOHO) spread is used as a measure of profitability in producing biodiesel and renewable diesel from soybean oil. Many feedstock choices tend to follow the BOHO spread.
A high, or rising BOHO spread, indicates it is, or becoming more expensive to produce biodiesel from soybean oil. When the BOHO spread is high, RIN values generally climb to help incentivize production. Without RINs, producing biodiesel at these levels would not be economically feasible.
Year to date, the BOHO spread has fallen 42 percent as ULSD heating oil futures and soybean oil futures have moved in opposite directions. ULSD prices are up eight percent while soybean oil values are down six percent.
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11.22.2024
Biodiesel margins rise, but window of opportunity limited
Biodiesel margins continued to rise during the week to Friday November 22. The bean oil/heating oil (BOHO) spread boosted margins by falling to its lowest level since August 27.
11.22.2024
Gulf prices average higher despite weeklong declines in SBO
For the week ended Friday November 22, packer bleachable fancy tallow (BFT) remained unchanged from the previous week’s average, while Gulf Coast-delivered tallow rose 2.7%, primarily...
11.22.2024
Bloodmeal largest price mover week on week; November cattle on feed higher
US animal protein prices were mixed to mostly higher for the week to Friday November 22, with only meat and bonemeal showing a slight price reduction due to tighter...