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Argus Media analyst Chris Hairel says Donald Trump's election victory is likely negative for the US biofuel sector on several fronts. Canadian oilseed growers had hoped for gains from US biofuel demand, but benefits have been limited by US imports of used cooking oil from China.
Expected policy changes could weaken US biofuel demand for soyoil and canola oil, which would pressure oilseed prices.
manitobacooperator.caNewsEnginNov 16, 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.
Not enough comparable past events yet for a historical read.
After 369 past bearish policy events, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), 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.
Expected negative Trump-era biofuel policy reduces anticipated soyoil feedstock demand, which is a sentiment driver for the drop.
