# Soybean oil quotations are declining against the backdrop of uncertainty in the US biofuel market and falling oil prices, but the reduction of duties in India will strengthen demand

> July Chicago soybean oil fell 3.2% to $1,035/ton on Friday, down about 5% over three sessions and a month, amid reduced export demand for US oil, possible cancellation of duties on Canadian rapeseed oil used in US biofuel, and reports the White House will not cut small refinery biofuel mandates. July Brent fell 2.4% over two sessions to $62.8/barrel after OPEC+ agreed to raise output, though prices rebounded Monday. India cut its basic crude edible oil import duty from 27.5% to 16.5% on May 30.

- Date: 2025-06-02 · published 2025-06-02T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/10944-soybean-oil-quotations-are-declining-against-the-backdrop-of-uncertainty-in-the
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Uncertainty over US biofuel blending demand and weaker crude weigh on soyoil prices, while India's duty cut should lift import demand for vegetable oils and support palm and soy oil prices, which feeds into soymeal and feed-fat supply.

## Read by commodity

- SBO: bearish ▼
- BRENT: bearish ▼
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2025-06-02 | 1 | -3.1% | -3.3 | Biofuel policy uncertainty (no SRE mandate cut, possible removal of duties on Canadian canola oil for US biofuel) and weak export demand and crude weakness pressured soyoil, though this describes the prior Friday's decline. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2025-06-02 | [Soybean oil prices fall amid uncertainty over US biofuel market and falling oil prices, but India's tariff cuts will boost demand](https://feedsoft.ai/events/10948-soybean-oil-prices-fall-amid-uncertainty-over-us-biofuel-market-and-falling-oil.md) | -2.3% | +5.8% |
| SBO | 2023-11-27 | [Soybean oil prices fall 4% amid possible reduction in demand from the biodiesel industry](https://feedsoft.ai/events/33251-soybean-oil-prices-fall-4-amid-possible-reduction-in-demand-from-the-biodiesel.md) | -0.2% | -4.1% |
| SBO | 2026-01-16 | [US soybean oil prices stall amid biofuel policy, 45Z uncertainty: 2026 preview - Fastmarkets](https://feedsoft.ai/events/15055-us-soybean-oil-prices-stall-amid-biofuel-policy-45z-uncertainty-2026-preview.md) | +1.3% | +6.8% |
| SBO | 2026-01-30 | [Biofuels policy uncertainty continues to pressure soybean demand and prices - Brownfield Ag News](https://feedsoft.ai/events/15056-biofuels-policy-uncertainty-continues-to-pressure-soybean-demand-and-prices.md) | +0.8% | +9.0% |
| SBO | 2024-05-01 | [New system of subsidies for biodiesel production in the US has brought down soybean oil prices](https://feedsoft.ai/events/30343-new-system-of-subsidies-for-biodiesel-production-in-the-us-has-brought-down.md) | +2.5% | +8.4% |
| PALMOIL | 2025-06-02 | [Soybean oil prices fall amid uncertainty over US biofuel market and falling oil prices, but India's tariff cuts will boost demand](https://feedsoft.ai/events/10948-soybean-oil-prices-fall-amid-uncertainty-over-us-biofuel-market-and-falling-oil.md) | +2.3% | +3.8% |
| PALMOIL | 2025-10-27 | [European soybean buyers cautious as EUDR timeline creates market uncertainty: Platts  - Milling Middle East & Africa Magazine - No.1 Grains Industry Magazine & Website for Africa & the Middle East](https://feedsoft.ai/events/4788-european-soybean-buyers-cautious-as-eudr-timeline-creates-market-uncertainty.md) | -0.6% | -6.4% |
| PALMOIL | 2022-08-11 | [Vegetable oils: Supply stress and biofuel blending mandates drive demand for soybean oil - Fastmarkets](https://feedsoft.ai/events/40126-vegetable-oils-supply-stress-and-biofuel-blending-mandates-drive-demand-for.md) | +1.5% | -11.2% |

## Sources

- tridge.com: https://www.tridge.com/news/soybean-oil-quotations-are-declining-against-zoehnd

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