Falling soybean oil prices are contributing to profit margins for biodiesel producers this year, according to analysts.
"Diesel blenders have bid up the price of biodiesel since the beginning of the year substantially in relation to the price of soybean oil, the main feedstock used to make biodiesel in the U.S.," according to a report published last week by Scott Irwin and Darrel Good of the Department of Agricultural and Consumer Economics at the University of Illinois. They said soybean oil prices are driving "production profits to levels rarely seen in recent years."
Soybean oil prices on the Chicago Board of Trade peaked at a high of 53.75 cents per pound Feb. 1 and dropped to a low of 41.40 cents Aug. 9. October soybean futures settled down 0.62 cents at 42.09 cents per pound Sept. 20, while down 0.74 cents on the week.
Myke Feinman can be reached at firstname.lastname@example.org