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The EPA finalized the Renewable Fuel Standard rule setting 2020 renewable volumes, keeping a net 15 billion gallons of conventional biofuel blended, and set 2021 biomass-based diesel volumes. The rule also adds small refinery relief adjustments to ensure the volumes are met.
A firm 15 billion gallon conventional blending requirement supports ethanol and corn demand. Biomass-based diesel volumes that show no growth for 2021 limit demand for soybean oil, which is bearish for soy crush margins and oil prices.
epa.govUS EPA,OADec 19, 2019After 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 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.
