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Soybean oil futures reached an all-time high of 73.74 cents in early June, then fell to 58.12 cents a couple of weeks later, a 21% drop. The decline followed a Reuters report that U.S. senators asked the Biden administration to cut biofuel blending mandates.
DTN's Todd Hultman says the year-long rally may be over.
Possible cuts to biofuel blending mandates threaten the main demand driver for soyoil, which weighs on crush margins and canola prices. Lower vegetable oil values reduce the incentive to crush soybeans, bearing on meal supply.
ukragroconsult.comJun 25, 2021After 206 past neutral policy events, Soybean Meal moved a median -0.4% over 5 sessions (44% higher; middle half -2.3% to +1.8%), and -0.7% over 20.
Not enough comparable past events yet for a historical read.
After 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.
