BOHO spread reaches 6-month low; soybean oil futures capitulate to 44-month low

BOHO spread reaches 6-month low; soybean oil futures capitulate to 44-month low

An already weak soybean oil market was caught off-guard by the California Air Resources Board (CARB) announcement that it was considering placing a cap of 20% on the amount of soybean oil renewable fuel producers could use, should its amendments be passed.

CARB’s proposed regulations have not been finalized. Public comment is open until August 27.

The Chicago Board of Trade’s closing price for soybean oil posted a 44-month low of 39.47 cents per lb on Thursday August 15. Prices posted a modest gain on Friday August 16, closing at 39.95 cents per lb.

Falling soybean oil prices helped lower the bean oil/heating oil (BOHO) spread to a six-month low on Thursday. The BOHO spread closed 22% lower on the week and helped ease Renewable Identification Number (RIN) prices along the way.

Membership is required to view the rest of this post.
Click here to learn more and sign up for a free 7-day trial!

Blog

11.21.2024

Domestic US biodiesel blending helps lift October RFS RIN production

Domestic US biodiesel blending helps lift October RFS RIN production

US domestic biodiesel blending of 147.5 million gallons in October produced a monthly high of 221.2 million renewable identification number (RIN) credits for January-October. This was 11.5% above September...

11.21.2024

CWG trades lower as broader animal fats markets hold steady

CWG trades lower as broader animal fats markets hold steady

The US animal fats and oils markets held steady on Thursday November 21, with limited trading as attention shifted toward broader macroeconomic factors and...

11.21.2024

October commercial cattle, hog production above 2023

October commercial cattle, hog production above 2023

US animal protein prices were steady on Thursday November 21. Limited trade was reported from market sources due to the proximity of the extended Thanksgiving holiday weekend in the...

Latest Tweets