
Reuters reports that a mix of state and federal programs supporting lower carbon intensity fuels received a boost from the Inflation Reduction Act in 2022. US renewable diesel production capacity has risen 200% since 2021.
Strong growth in renewable diesel capacity increases demand for soyoil and other vegetable oils, which supports soybean crush and prices.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% 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.