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Dr. Scott Irwin discussed the renewable diesel boom and its expected effect on the soybean market on a Purdue AgCast episode. The conversation also covered the sustainable aviation fuel market and its potential impact on U.S. agriculture.
Renewable diesel demand for soybean oil supports crush margins and soybean oil prices, but Irwin argues that growth depends on government policy rather than consumer demand, which limits how far the boom can push prices.
ag.purdue.eduSarah E ZahnJan 24, 2024After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 554 past neutral policy events, SOY moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% 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.
