The bean oil/heating oil spread (BOHO) in the US climbed by 23% in the week to Friday August 23 compared with the week prior, primarily due to rising soybean oil and feedstock costs. A rising BOHO signals a more challenging economic environment for biodiesel and renewable diesel production.
Soybean oil futures on the Chicago Board of Trade (CBOT) rose by 4% in the week to Friday, elevating feedstock costs for biofuel production, and prices for ultra-low-sulfur diesel (ULSD) declined by 1%, which also provided upward pressure on the BOHO spread.
Prices for soybean oil and other feedstocks used to produce biofuel have been down in recent weeks. Soybean oil futures posted a year-to-date high of 49.55 cents per lb on July 5 and have been trending lower ever since.
…
11.21.2024
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
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
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...