# US vegetable oil market: 45Z clean fuel production credit

> Passage of the One Big Beautiful Bill extends the 45Z clean fuel production credit through 2029 and limits eligibility to biofuels made in the US, Mexico and Canada. The law also removes ILUC scoring, letting soybean oil qualify for nearly the same credits as lower-carbon feedstocks. It was signed into law on July 4.

- Date: 2025-07-16 · published 2025-07-16T12:00:00.000Z
- Category: policy · region US · magnitude high
- Page: https://feedsoft.ai/events/15105-us-vegetable-oil-market-45z-clean-fuel-production-credit
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Favoring North American feedstocks and removing ILUC penalties should boost US soybean oil demand and prices. Palm oil and other imported feedstocks lose competitiveness in US biofuel markets.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2025-01-16 | [Clean Fuel Production Credit excludes producers from using used cooking oil  - Indiana Corn and Soy](https://feedsoft.ai/events/26610-clean-fuel-production-credit-excludes-producers-from-using-used-cooking-oil.md) | -0.5% | +2.2% |
| SBO | 2026-09-02 | [US soybean oil rally supports global vegetable oil market](https://feedsoft.ai/events/4538-us-soybean-oil-rally-supports-global-vegetable-oil-market.md) | -4.0% | -7.2% |
| SBO | 2026-06-01 | [Renewable fuel credit prices hit records on U.S. biofuel mandates, oil market volatility](https://feedsoft.ai/events/18888-renewable-fuel-credit-prices-hit-records-on-u-s-biofuel-mandates-oil-market.md) | -2.0% | -6.1% |
| SBO | 2026-05-29 | [Renewable fuel credit prices hit records on U.S. biofuel mandates, oil market volatility \| Reuters](https://feedsoft.ai/events/19350-renewable-fuel-credit-prices-hit-records-on-u-s-biofuel-mandates-oil-market.md) | -0.2% | -3.8% |
| SBO | 2026-06-30 | [How Rising Biofuel Demand Impacts Vegetable Oil Markets](https://feedsoft.ai/events/18889-how-rising-biofuel-demand-impacts-vegetable-oil-markets.md) | +1.3% | +1.8% |
| PALMOIL | 2025-01-16 | [Clean Fuel Production Credit excludes producers from using used cooking oil  - Indiana Corn and Soy](https://feedsoft.ai/events/26610-clean-fuel-production-credit-excludes-producers-from-using-used-cooking-oil.md) | -0.3% | +4.2% |
| PALMOIL | 2025-12-16 | [U.S. Renewable Fuel Standard proposal would mean more vegetable oil imports, high costs, and minimal greenhouse gas reductions - International Council on Clean Transportation](https://feedsoft.ai/events/15066-u-s-renewable-fuel-standard-proposal-would-mean-more-vegetable-oil-imports-high.md) | -0.4% | +1.0% |
| PALMOIL | 2025-02-25 | [Sunseed prices continue to rise in Ukraine, but vegetable oil markets have seen a drop in prices](https://feedsoft.ai/events/26191-sunseed-prices-continue-to-rise-in-ukraine-but-vegetable-oil-markets-have-seen.md) | -2.7% | -2.4% |

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/cash-vegetable-oil-market-digests-passage-of-45z-waiting-on-rvos-sres/

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