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Soybean oil prices rose about 3% to 68 cents per pound last week, while ULSD futures fell 4%. The bean oil/heating oil spread climbed 14% to $2.18 per gallon, squeezing biodiesel margins that had recently been above break-even.
RIN values rose 7%, about half the increase in the spread.
A wider bean oil/heating oil spread raises biodiesel production costs and can reduce crush-driven demand for soybean oil. Higher RINs may partly offset the squeeze, but sustained margin pressure could slow biodiesel output and weigh on soyoil demand.
thejacobsen.comFeb 22, 2022Not 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.
