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A CME Group article describes European renewable fuel mandates under RED and RED II, which raise road transport blending targets to 14% from 2021. It notes growing trading volumes in European biodiesel futures, with 125,000 lots traded year to date through August 2020.
Higher European blending mandates support demand for vegetable oil-based biodiesel feedstocks, which can pull on global vegetable oil prices. The effect on US soybean oil is indirect.
cmegroup.comSep 14, 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.
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.
