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ING analysis says US biofuel demand is policy-driven, with corn making up over 90% of biofuel feedstock volume and soybean oil about 3%. Vegetable oils are expected to see strong growth as renewable diesel feedstock.
Expected growth in renewable diesel feedstock demand supports soybean oil prices, while corn's ethanol outlet depends on policy and new market access.
think.ing.comCoco Zhang, Thijs Geijer, Warren PattersonOct 23, 2023After 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 439 past neutral policy events, CORN moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +1.2%), and +1.1% 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.
