# Soybean oil prices fall amid uncertainty over US biofuel market and falling oil prices, but India's tariff cuts will boost demand

> July Chicago soybean oil fell 3.2% to $1,035/t on Friday amid reduced export demand, possible elimination of tariffs on Canadian rapeseed oil for US biofuel, and reports the White House will not cut small refinery biofuel mandates. Brent fell 2.4% to $62.8/barrel after OPEC+ raised output, then rebounded Monday. India cut its basic import duty on crude palm, soybean and sunflower oil from 27.5% to 16.5% on May 30.

- Date: 2025-06-02 · published 2025-06-02T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/10948-soybean-oil-prices-fall-amid-uncertainty-over-us-biofuel-market-and-falling-oil
- 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

India's lower duty should boost vegetable oil import demand and support palm and sunflower oil prices, while weak US biofuel demand and crude keep soyoil under pressure.

## 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 | Same report on biofuel policy uncertainty, weak exports and lower crude weighing on soyoil; momentum carried into Monday, partly offset by India's duty cut supporting demand. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2025-06-02 | [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](https://feedsoft.ai/events/10944-soybean-oil-quotations-are-declining-against-the-backdrop-of-uncertainty-in-the.md) | -2.3% | +5.8% |
| 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 | 2026-10-15 | [Soybean oil prices fall amid new US biofuel proposals](https://feedsoft.ai/events/510-soybean-oil-prices-fall-amid-new-us-biofuel-proposals.md) | +1.8% | — |
| 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 | 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% |
| PALMOIL | 2025-06-02 | [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](https://feedsoft.ai/events/10944-soybean-oil-quotations-are-declining-against-the-backdrop-of-uncertainty-in-the.md) | +2.3% | +3.8% |
| 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% |
| PALMOIL | 2026-10-27 | [Rising biofuel demand tightens US soybean oil supplies, puts pressure on industrial users - BioEnergy Times](https://feedsoft.ai/events/503-rising-biofuel-demand-tightens-us-soybean-oil-supplies-puts-pressure-on.md) | +0.8% | — |

## Sources

- graintrade.com.ua: https://graintrade.com.ua/en/novosti/kotiruvannya-na-soevu-oliyu-opuskayutsya-na-tli-neviznachenosti-z-rinkom-biopaliva-u-ssha-.html

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