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The Illinois Soybean Association says imported feedstocks such as used cooking oil are displacing soybean oil in biodiesel because they earn larger LCFS credits. It also says the 45Z credit will cut the incentive for soy biodiesel from $1 to 35 cents per gallon starting in 2025.
Lower incentives for soy-based biodiesel reduce demand for soybean oil, which is bearish for soy oil prices and pushes more crush margin into meal.
ilsoy.orgOlivia KeyDec 1, 2024After 351 past bearish policy events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), and -0.2% over 20.
After 172 past bullish policy events, Soybean Meal moved a median +0.0% over 5 sessions (50% higher; middle half -1.5% to +1.7%), and -0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
