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An economist at the University of Illinois argues that US renewable diesel and biodiesel capacity plans, about 6 billion gallons by 2025 and 7.4 billion in later years, exceed the EPA's 4 to 4.5 billion gallon mandate. He says some plants will not be built, will run well below capacity, or will push existing biodiesel plants out of business.
He cites the wide premium of biodiesel and renewable diesel over conventional diesel as a key strain.
If planned capacity outruns the mandate, feedstock demand for soybean oil and canola could weaken, pressuring oil prices. The mismatch also raises the risk of plant closures that cut feedstock buying.
producer.comSean PrattDec 28, 2023After 196 past neutral policy events, Soybean Oil moved a median +0.1% over 5 sessions (52% higher; middle half -1.6% to +2.0%), and -0.5% 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.
