The soybean oil/heating oil (BOHO) price spread narrowed in the week to Friday June 14, with heating oil prices gaining traction while soybean oil was little changed.

The BOHO spread fell by over 10% during the week, while D4 renewable identification number (RIN) prices rose by 2%.

D4 RIN prices are still down by almost 30% from the start of the year.

Soybean oil is the most widely used feedstock in the production of biomass-based diesel. The BOHO price spread is used as a proxy to measure the profitability of producing biodiesel from soybean oil as a feedstock — the higher the spread, the more costly production becomes and vice versa.

Since the fourth quarter of 2023, US renewable diesel (RD) producers have been facing a generally narrow BOHO spread and depressed profit margins.

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