Soybean oil prices fell 6% on the day on rumors that the US authorities are against increasing tax breaks for biofuel producers

A two-month speculative 25% increase in soybean oil prices was triggered by the preparation by representatives of the oil and biofuel industries of a bill to increase biofuel blending mandates in the US to 5.5 billion gallons by 2031, while the current level is 3.35 billion gallons. However, it is known that the Trump Administration does not support “green energy”, and yesterday information emerged from lawmakers that the target for renewable diesel volumes for next year, which is currently being discussed, will be significantly lower than the 5.25 billion gallons proposed by the alliance of oil and biofuel producers. July soybean oil futures in Chicago fell 6% yesterday to $1,088/t, but are trading 2.9% higher than a month ago and 17.6% higher than two months ago, so have the potential to fall. The agreement between the US and China to reduce tariffs earlier this week led to a sharp rise in soybean and soybean oil prices, but the realization that even a 10% tariff makes ...