Biofuel margins have shown a significant increase over the past couple of weeks, with feedstock prices moving lower while renewable identification number (RIN) values have climbed, Fastmarkets heard on Wednesday October 16.
The soybean oil/heating oil spread (BOHO) has fallen by 23% since September 24. A falling BOHO spread signals a less challenging economic environment for biodiesel and renewable diesel (RD) production. When the BOHO spread moves lower, RIN prices tend to decline because profitability is improving.
The BOHO spread moved lower when soybean oil prices fell by 5% and ultra-low sulfur diesel prices rose by 4%.
RIN prices did not decline with the BOHO during this period, signaling a disconnect from the BOHO. Biomass-based diesel (BBD) RINs for 2024 (B24) were up by 8%, compounding the benefit for BBD production.
…
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...