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The EPA's 2017 Renewable Fuel Standard volumes, announced Wednesday, came in above expectations for biodiesel blending. Soyoil futures in Chicago jumped nearly 7% on the news, and Malaysian palm oil reached a four-year high while Chinese soy and palm oil futures also rose.
Higher biofuel mandates raise demand for vegetable oils used in biodiesel, tightening oil supplies and lifting soyoil and palm oil prices. Soybean meal is less directly supported because the oil and meal come from the same crush.
biofuelsdigest.comMeghan SappNov 24, 2016After 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.
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.
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.
