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Beeson Inc. analyst Alex Norton says the US government raised 2017 Renewable Fuels Standard mandates, requiring more fats for biodiesel, which the market did not anticipate. He estimates the change adds about 100 million pounds of soybean oil demand beyond USDA's existing forecasts, and says supplies are tight across vegetable oil markets.
Additional biodiesel demand tightens soybean oil and broader vegetable oil supplies, supporting fats and oils prices for feed and industrial buyers.
agweek.comAlex Norton, Beeson Inc.Dec 5, 2016After 841 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 547 past bullish policy events, PALMOIL moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
After 206 past neutral policy events, SBM moved a median -0.4% over 5 sessions (44% higher; middle half -2.3% to +1.8%), and -0.7% 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.
