# Bo-Ho factor rises to six month high on rising crude oil stocks  : The Daily Digest

> 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.

- Date: 2019-08-08 · published 2019-08-08T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/11475-bo-ho-factor-rises-to-six-month-high-on-rising-crude-oil-stocks-the-daily-digest
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

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.

## Read by commodity

- SBO: bullish ▲
- WTI: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2019-08-11 | 5 | +7.9% | 3.7 | The Bo-Ho spread reached a six-month high, which signals better biodiesel blending margins and supports soybean oil demand. |
| SBO | 2019-08-07 | 1 | +3.6% | 3.5 | The Bo-Ho spread at a six-month high signals improved soybean oil biodiesel blending margins, supporting soyoil demand and prices around the move. |

## Sources

- biofuelsdigest.com: https://biofuelsdigest.com/bo-ho-factor-rises-to-six-month-high-on-rising-crude-oil-stocks/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.