# California’s proposal to cap SBO, canola oil at 20% of feedstock mix likely to impact RD, biodiesel: sources - The Jacobsen

> Fastmarkets sources say CARB's 15-Day Changes cap virgin soybean and canola oil credits at 20% of annual credit production and raise the 2025 stringency step-down to 9%. Renewable diesel consumes more soybean oil than biodiesel under the LCFS, so the proposal is seen as net positive for biofuel demand but negative for soybean and canola oil feedstocks.

- Date: 2024-08-27 · published 2024-08-27T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/15191-california-s-proposal-to-cap-sbo-canola-oil-at-20-of-feedstock-mix-likely-to
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md)

## Why it matters

Restricting virgin oil use in California's LCFS reduces feedstock demand for soybean and canola oil, although stricter carbon targets support overall biofuel demand.

## Read by commodity

- SBO: bearish ▼
- CANMEAL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2021-06-25 | [Expected end to soy oil run likely to impact canola price - UkrAgroConsult](https://feedsoft.ai/events/46689-expected-end-to-soy-oil-run-likely-to-impact-canola-price-ukragroconsult.md) | +2.9% | +3.6% |
| SBO | 2026-10-01 | [Rising biodiesel imports cap US soybean oil prices](https://feedsoft.ai/events/17543-rising-biodiesel-imports-cap-us-soybean-oil-prices.md) | +1.8% | +3.3% |
| SBO | 2019-07-05 | [Agency's Proposal Leaves Little Room for Growth in Biodiesel](https://feedsoft.ai/events/57958-agency-s-proposal-leaves-little-room-for-growth-in-biodiesel.md) | +0.2% | -1.2% |
| SBO | 2024-08-13 | [California may cap credits for soy or canola-based renewable diesel \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/15189-california-may-cap-credits-for-soy-or-canola-based-renewable-diesel-agri-pulse.md) | -3.5% | -1.4% |
| SBO | 2024-04-15 | [Rivals Trim Soy Oil’s Lead Among Biomass-based Diesel Feedstocks](https://feedsoft.ai/events/30821-rivals-trim-soy-oil-s-lead-among-biomass-based-diesel-feedstocks.md) | -4.3% | -5.3% |

## Sources

- thejacobsen.com: https://thejacobsen.com/2024/08/27/californias-proposal-to-cap-sbo-canola-oil-at-20-of-feedstock-mix-likely-to-impact-rd-biodiesel-sources/

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