# Renewable diesel margins shrinking on rapidly changing market dynamics - Fastmarkets

> Feedstock prices reached record highs, led by soybean oil above 75 cents per pound. Dry weather in key South American growing regions cut supply expectations. Renewable diesel capacity in the US is forecast to rise sharply by the end of 2022, squeezing producer margins.

- Date: 2022-03-07 · published 2022-03-07T12:00:00.000Z
- Category: weather · region South America · magnitude medium
- Page: https://feedsoft.ai/events/15411-renewable-diesel-margins-shrinking-on-rapidly-changing-market-dynamics
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Drought-hit South American supply combined with surging biofuel feedstock demand keeps vegetable oil prices elevated and compresses renewable diesel margins.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2022-10-24 | [Soybean crush margins: An overview - Fastmarkets](https://feedsoft.ai/events/14000-soybean-crush-margins-an-overview-fastmarkets.md) | +1.9% | +3.6% |
| SBO | 2026-08-01 | [El Niño 2026: Converging Pressures on Vegetable Oil Markets - Center for Commercial Agriculture](https://feedsoft.ai/events/18245-el-nino-2026-converging-pressures-on-vegetable-oil-markets-center-for.md) | +3.6% | +2.3% |
| SBO | 2025-02-03 | [‘It won’t come back’: Argentina farmers battle drought and a shrinking harvest \| Reuters](https://feedsoft.ai/events/13878-it-won-t-come-back-argentina-farmers-battle-drought-and-a-shrinking-harvest.md) | -0.9% | +0.0% |
| SBO | 2026-07-29 | [Market Update for Rapeseed & Canola 29th of July 2026](https://feedsoft.ai/events/18453-market-update-for-rapeseed-and-canola-29th-of-july-2026.md) | +2.3% | +3.0% |
| SBO | 2022-02-17 | [Why is the price of vegetable oil surging? - Marketplace](https://feedsoft.ai/events/8759-why-is-the-price-of-vegetable-oil-surging-marketplace.md) | +6.8% | +4.4% |
| PALMOIL | 2024-01-23 | [Palm oil rebounds on severe rain concerns, Chinese demand - Markets - Business Recorder](https://feedsoft.ai/events/32229-palm-oil-rebounds-on-severe-rain-concerns-chinese-demand-markets-business.md) | +0.4% | -0.9% |
| PALMOIL | 2026-08-01 | [El Niño 2026: Converging Pressures on Vegetable Oil Markets - Center for Commercial Agriculture](https://feedsoft.ai/events/18245-el-nino-2026-converging-pressures-on-vegetable-oil-markets-center-for.md) | +2.0% | +4.5% |
| PALMOIL | 2022-02-17 | [Why is the price of vegetable oil surging? - Marketplace](https://feedsoft.ai/events/8759-why-is-the-price-of-vegetable-oil-surging-marketplace.md) | +4.5% | +13.8% |

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/renewable-diesel-margins-shrinking-on-rapidly-changing-market-dynamics/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.