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The US EPA's increased biofuel mandate of 19.28 billion gallons for 2017, the highest ever, is lifting soybean oil prices, which rose about 6.8% on CBOT. MIDF Research says palm oil, a substitute for soybean oil, has risen about 1.5% to around RM3,000 per tonne.
Higher US biofuel blending demand for soybean oil pulls substitute vegetable oils like palm oil higher, and tight Malaysian palm stocks support the rally. Higher vegetable oil prices raise the cost of oil-based feed ingredients and reduce the relative value of soybean meal from crush.
theborneopost.comJustNov 26, 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 206 past neutral policy events, Soybean Meal 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.
