# Volatile Biofuels Demand Is Reshaping the Price Relationship between Soybean and Palm Oils

> Research from Farmdoc shows that soybean oil and palm oil prices have moved together less closely since 2020. Their price gap now diverges more often and for longer periods. The authors attribute this to biofuel-driven shocks that are becoming more regional or national.

- Date: 2025-12-29 · published 2025-12-29T12:00:00.000Z
- Category: policy · region Global · magnitude low
- Page: https://feedsoft.ai/events/21600-volatile-biofuels-demand-is-reshaping-the-price-relationship-between-soybean
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Weaker co-movement means soyoil and palm oil can no longer be priced as close substitutes, so buyers should expect wider and more persistent spreads. Regional biofuel policy will increasingly drive which oil is cheaper.

## Read by commodity

- SBO: neutral
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2024-01-30 | [Renewable biodiesel and soybean prices: What to expect](https://feedsoft.ai/events/15244-renewable-biodiesel-and-soybean-prices-what-to-expect.md) | +0.0% | -1.4% |
| SBO | 2026-06-01 | [South American soybean oil prices 2026 outlook: supply and demand amid shifting global policies](https://feedsoft.ai/events/19354-south-american-soybean-oil-prices-2026-outlook-supply-and-demand-amid-shifting.md) | -2.0% | -6.1% |
| SBO | 2020-04-17 | [Coronavirus spurs new clash between Big Oil and Big Corn over U.S. biofuels](https://feedsoft.ai/events/53532-coronavirus-spurs-new-clash-between-big-oil-and-big-corn-over-u-s-biofuels.md) | -2.6% | -1.4% |
| SBO | 2021-02-23 | [The Palm Oil Industry is Changing — and the EU Can Help — CSPO](https://feedsoft.ai/events/48669-the-palm-oil-industry-is-changing-and-the-eu-can-help-cspo.md) | +2.0% | +19.7% |
| SBO | 2017-03-15 | [Why Carl Icahn And Valero Are Pushing For Biofuels Changes In Washington \| OilPrice.com](https://feedsoft.ai/events/71866-why-carl-icahn-and-valero-are-pushing-for-biofuels-changes-in-washington.md) | +4.1% | -2.4% |
| PALMOIL | 2025-12-31 | [Biofuel mandates redraw the soybean oil map in South America](https://feedsoft.ai/events/21598-biofuel-mandates-redraw-the-soybean-oil-map-in-south-america.md) | +0.5% | +3.2% |
| PALMOIL | 2017-03-29 | [Palm oil and deforestation: closing the gap between commitments and actions - Roundtable on Sustainable Palm Oil (RSPO)](https://feedsoft.ai/events/72019-palm-oil-and-deforestation-closing-the-gap-between-commitments-and-actions.md) | -5.4% | -7.4% |
| PALMOIL | 2025-11-21 | [Broken promises and palm oil – ‘no deforestation’ is failing and we need regulation - EIA](https://feedsoft.ai/events/21990-broken-promises-and-palm-oil-no-deforestation-is-failing-and-we-need-regulation.md) | -0.5% | -1.9% |

## Sources

- agriculture.com: https://www.agriculture.com/partners-volatile-biofuels-demand-is-reshaping-the-price-relationship-between-soybean-and-palm-oils-11876832

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