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The renewable diesel boom is driving a surge in planned soybean crushing capacity and demand for more soybeans. Economists point to California's Low Carbon Fuel Standard as the main driver, while the proposed federal RFS volumes and falling LCFS credit values could temper growth.
Expanded crush capacity raises soybean oil output and meal supply, supporting soybean oil demand while adding pressure on soybean meal prices.
agri-pulse.comNoah WicksDec 7, 2022After 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 223 past bearish policy events, Soybean Meal moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% over 20.
After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), 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.
