# Soybean oil in the biofuel era: An industry expert’s perspective

> Reuters industry commentary says soybean oil commands a smaller premium under the new policy because of its relatively high carbon intensity. The shift from the 40A blending credit to the 45Z production credit disrupted the market in early 2025 and reduced biomass-based diesel output and soybean oil feedstock demand.

- Date: 2025-08-18 · published 2025-08-18T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/15096-soybean-oil-in-the-biofuel-era-an-industry-expert-s-perspective
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Policy-driven swings in biofuel feedstock demand feed directly into soybean oil prices, and lower biodiesel output reduces the crush margin support for meal.

## Read by commodity

- SBM: bearish ▼
- SBO: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2018-05-21 | [Waiver Wire: Why is the biofuels industry up in arms about oil refinery waivers?  : The Daily Digest](https://feedsoft.ai/events/64918-waiver-wire-why-is-the-biofuels-industry-up-in-arms-about-oil-refinery-waivers.md) | +1.2% | -4.6% |
| SBO | 2023-07-22 | [Final RVOs discount industry's biofuel capabilities - Kansas Soybeans](https://feedsoft.ai/events/15293-final-rvos-discount-industry-s-biofuel-capabilities-kansas-soybeans.md) | +3.6% | -1.3% |
| 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 | 2026-10-14 | [CBOT soybean oil futures plunge as EPA biofuel proposal weighs on the market \| S&P Global](https://feedsoft.ai/events/502-cbot-soybean-oil-futures-plunge-as-epa-biofuel-proposal-weighs-on-the-market-s.md) | +2.4% | — |
| SBM | 2021-10-12 | [Oil becoming new driver for soybean industry](https://feedsoft.ai/events/44619-oil-becoming-new-driver-for-soybean-industry.md) | +0.3% | +3.1% |
| SBM | 2026-07-26 | [Biofuel Mandates Test Capacity and Soybean Oil Demand - RFD](https://feedsoft.ai/events/15007-biofuel-mandates-test-capacity-and-soybean-oil-demand-rfd.md) | -4.7% | -4.2% |
| SBM | 2016-11-24 | [Soybean oil futures rose by 7% due to high biofuel](https://feedsoft.ai/events/6691-soybean-oil-futures-rose-by-7-due-to-high-biofuel.md) | -1.7% | -2.2% |

## Sources

- reuters.com: https://www.reuters.com/plus/cme/soybean-oil-in-the-biofuel-era-an-industry-experts-perspective

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