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University of California researchers examine how federal RFS and California LCFS policies have shifted fuel and vegetable oil markets. Their research finds that growing U.S. renewable diesel demand pushed vegetable oil consumer prices higher after 2020.
California renewable diesel rose from about 5% of diesel blend as LCFS credit prices increased.
Biofuel policy-driven demand for vegetable oils raises their prices and links food costs to fuel mandates. The findings underline that policy changes can swing soybean oil and other feedstock prices.
agriculture.ucdavis.eduRia DeBiase
July 09, 2024Jul 9, 2024After 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 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), 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.
