# Bo-Ho factor hits two-year high  : The Daily Digest

> Platts reports the Bo-Ho factor, the spread between heating oil futures and soybean oil feedstock that signals discretionary biodiesel blending viability, reached a two-year high of 59.87 cents/gal on stronger soybean oil prices. Economics remain unfavorable for added blending despite the reinstated $1/gal biodiesel credit.

- Date: 2020-01-21 · published 2020-01-21T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/55172-bo-ho-factor-hits-two-year-high-the-daily-digest
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md)

## Why it matters

Higher soybean oil feedstock costs relative to diesel discourage discretionary blending, which limits soybean oil demand from the biofuel sector and weighs on producer margins.

## Read by commodity

- SBO: bullish ▲
- DIESEL: bullish ▲

## Sources

- biofuelsdigest.com: https://biofuelsdigest.com/bo-ho-factor-hits-two-year-high/

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