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The EPA has announced an indefinite delay in releasing future Renewable Volume Obligations under the Renewable Fuel Standard, and it has proposed extending compliance deadlines for 2020 and 2021. No biodiesel volume guidance exists yet for 2022 or later, although 2021 biodiesel volumes were set at 2.43 billion gallons.
Without 2022 volume targets, biodiesel demand for soybean oil is uncertain, which removes a key support for soybean oil prices. Markets may price in weaker outlook demand until the EPA sets obligations.
iasoybeans.comIowa Soybean AssociationNov 24, 2021After 351 past bearish policy events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), and -0.2% 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.
