Loading…
DTN reports that analysts struggle to model soybean oil needs as renewable diesel projects multiply. Rabobank's forecasts show renewable diesel could require tens of millions of added soybean acres and about 3.6 billion bushels more soybean production by 2030.
Government policies, including the RFS RIN system, a $1 per gallon tax credit and California's LCFS, drive the buildout.
Growing biofuel demand for soybean oil is expected to tighten vegetable oil supplies and lift soybean prices and crush margins. The policy-driven outlook supports firmer soybean and soy oil prices.
dtnpf.comChris ClaytonDec 16, 2021After 841 past bullish policy events, SBO 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, SOY moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% 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.
