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The American Soybean Association endorsed a bipartisan Senate bill introduced April 26 that would convert the biodiesel tax credit into a domestic production credit for three years. The ASA noted that about half of U.S. biodiesel is made from soybean oil, a byproduct of meal demand.
Securing a multi-year credit would support domestic biodiesel margins and soybean oil demand, while soybean meal supply would be unaffected. The bill still needs passage, so the price effect is medium at most.
soygrowers.comApr 26, 2017After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 356 past bullish policy events, SOY 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.
