Despite the move higher, D4 RINs are down 2% in value from the previous week. RIN prices are receiving support from the rising bean oil/heating oil (BOHO) spread, which is up 9% in the past week.

The BOHO spread measures the profitability for producing biodiesel from soybean oil. The higher the spread the more costly production. When the spread rises, RIN values generally increase to offset escalating production costs. The reverse tends to be true when the BOHO spread declines.

RINs are the currency of the Renewable Fuel Standard (RFS) and used to incentivize production. RIN prices are expected to rise to offset higher production costs and may continue to climb in the near-term if the BOHO spread remains elevated.

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