
Reuters explains that the Biden administration must make decisions in 2022 to reset Renewable Fuel Standard volume mandates, which could make it the program's most transformative year. The mandates determine how much renewable fuel must be blended into US gasoline and diesel.
Pending RFS volume decisions directly determine biofuel feedstock demand, making them a major swing factor for soybean oil, corn and diesel-linked prices.
After 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.
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.
After 554 past neutral policy events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% 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.