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S&P Global Platts found that rising federal and state incentives have pushed the value of renewable diesel and sustainable aviation fuel credits above production costs. D4 RINs reached multi-year highs alongside soybean oil rallies, and the reinstated $1/gal federal biomass-based diesel tax credit runs through 2022.
Credit values above production cost should keep refiners converting capacity to renewable fuels, adding steady demand for soybean oil and supporting its price. The same incentives could turn negative for producers if credit values fall.
spglobal.comJosh PedrickSep 21, 2020After 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.
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.
