Biodiesel boho factor soars to 2.5 year high on back of RFS announcement

In Illinois, the boho factor between soy oil prices and heating oil prices has risen to its highest level in two and a half years as soy oil climbs higher. The higher soybean oil is thought to be a result of the EPA’s blending mandate announcement for 2014-2016 this past Monday. Yet the higher the boho factor goes, the worse the economics of blending biodiesel becomes.  The boho factor had risen 10 of the previous 13 sessions as of Tuesday but the EPA announcement is thought to drive it further.