Biodiesel Boho factor hits four-week high, hurting blending economics and margins

In Illinois, the Boho factor between soy oil and heating oil has reached a four-week high at 52.62 cents/gal, cutting into biodiesel margins and weakening blending economics, as soy oil futures rise faster than ultra low sulfur diesel futures prices. There are concerns about the ongoing soybean harvest that have been supporting prices, contrary to the typically better biodiesel feedstock prices experienced during the North American harvest period. October soybean oil futures rose 28 points to 27.46 cents/lb on Wednesday on the Chicago Board of Trade.