# Rising Soybean Oil Prices Impact Biodiesel Production Margins

> 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.

- Date: 2022-02-22 · published 2022-02-22T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/42785-rising-soybean-oil-prices-impact-biodiesel-production-margins
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

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.

## Read by commodity

- SBO: bullish ▲
- DIESEL: bearish ▼

## Sources

- thejacobsen.com: https://thejacobsen.com/2022/02/22/rising-soybean-oil-prices-impact-biodiesel-production-margins/

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