ULSD price hits lowest level since December 2021, helping raise BOHO spread to 1-month high

ULSD price hits lowest level since December 2021, helping raise BOHO spread to 1-month high

Ultra-low-sulfur diesel (ULSD) futures on the Chicago Mercantile Exchange (CME) closed at the lowest level since December 2021 and combined with rising soybean oil futures to lift the bean oil/heating oil (BOHO) spread to a one-month high on Wednesday August 28. Soybean oil futures posted their highest close in two weeks.

Falling ULSD prices have a negative impact on renewable fuels, making them less competitive relative to diesel and discouraging blending. To offset the negative impact of lower ULSD prices and a rising BOHO spread, renewable identification numbers (RINs) — which are assigned to biofuels and traded — often rise to compensate.

RIN prices climbed to a two-week high of approximately 57 cents per RIN. Biodiesel producers reported steady prices for the most part compared with last week. Midwest biodiesel prices were mostly reported trading at $3.85-4.00 per gallon for B100 biodiesel.

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