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Rep. Mike Thompson introduced a bill on June 18 to extend the biodiesel tax credit for three years, though retroactive provisions mean it would only run through 2020.
Iowa Soybean Association representatives say industry needs certainty to invest in infrastructure.
A renewed biodiesel credit supports domestic soybean oil demand and crush margins, which would lift soy oil prices and leave more meal supply. Passage is still uncertain, so the price effect is modest for now.
iowaagribusinessradionetwork.comDustin HoffmannJun 19, 2019After 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 223 past bearish policy events, Soybean Meal moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% 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.
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.
