Loading…
Bloomberg reports that the push for renewable fuels, including ethanol and renewable diesel, is colliding with rising food prices. Corn, soybeans, palm oil and sugar are being absorbed by biofuel production during a broader commodities rally.
Phillips 66 and JPMorgan projections are cited for rapid renewable diesel capacity growth.
Expanding biofuel feedstock demand tightens supplies of corn, soybean oil and palm oil, which supports prices and raises feed input costs.
farmprogress.comBloombergMay 20, 2021After 318 past bullish policy events, Corn moved a median -0.1% over 5 sessions (48% higher; middle half -1.4% to +1.5%), and -0.2% over 20.
After 356 past bullish policy events, Soybeans moved a median +0.1% over 5 sessions (53% higher; middle half -1.2% to +2.3%), and -0.9% over 20.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), 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.
