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The White House is weighing inflation concerns against farmer interests in setting new biofuel mandates. Demand for advanced biofuels such as renewable diesel and sustainable aviation fuel has surged as states adopt their own mandates, while ethanol demand has stagnated.
Higher biofuel mandates pull soybean oil and canola demand toward fuel use, supporting oilseed prices, while a mandate cut would weigh on those markets.
reuters.comJarrett RenshawMay 16, 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 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.
Not enough comparable past events yet for a historical read.
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.
