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FreightWaves reports that the Renewable Volume Obligation has risen in 2021 due to government mandates and higher prices for corn and soybean feedstocks. The RVO cost may add up to 15 cents per gallon to retail diesel.
Higher RVO costs pass through to diesel prices and reflect stronger biofuel feedstock values, supporting soybean oil and corn-based ethanol economics.
freightwaves.comJohn KingstonApr 21, 2021After 90 past bullish policy events, ULSD / Diesel moved a median +1.4% over 5 sessions (66% higher; middle half -1.9% to +4.1%), and +0.1% 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 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.
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.
