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The Bo-Ho factor, which tracks the spread between soybean oil and heating oil and signals biodiesel blending profitability, rose to a six-month high of 30.75 cents per gallon. Crude prices fell after US crude stocks built by 2.39 million barrels, against an expected draw of 3.8 million barrels.
A wider soybean oil to heating oil spread improves biodiesel economics, supporting soybean oil demand, while lower crude prices reduce the energy-side competition for soy oil.
biofuelsdigest.comMeghan SappAug 8, 2019Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The Bo-Ho spread reached a six-month high, which signals better biodiesel blending margins and supports soybean oil demand.
The Bo-Ho spread at a six-month high signals improved soybean oil biodiesel blending margins, supporting soyoil demand and prices around the move.
