Bo-Ho factor hits two-year high

January 21, 2020 |

In Texas, Platts reports that the Bo-Ho factor, the differential between heating oil futures and soybean oil feedstock for biodiesel that indicates the viability of discretionary biodiesel blending, reached a two-year high last Friday at to 59.87 cents/gal on the back of stronger soybean oil prices. Even with the reinstatement of the $1/gal biodiesel blending credit, economics are still not in favor of increased biodiesel blending, which is expected to further cut into the profitability of producers due to low seasonal demand.

Category: Fuels

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