The reduction in demand lowers the quotations for vegetable oils, which is further accelerated by the drop in oil prices.

Uncertainty regarding the Trump administration's policy on supporting biofuel production led to a 5.4% drop in soybean oil futures in Chicago over the week, increasing pressure on related oils. At the same time, the market expects a sharp drop in palm oil prices under pressure from rising stocks, reduced exports, and a sharp decline in oil prices. According to a report submitted to the U.S. District Court for the District of Columbia on December 15, the U.S. Environmental Protection Agency (EPA) plans to release final Renewable Volume Obligations (RVO) rules for 2026 and 2027 in the first quarter of 2026, although the market expected this decision as early as the third quarter of 2025. Recall that the issue of renewable fuel volumes has repeatedly been a speculative cause of rising and falling prices for soybean oil, which is the basis for biodiesel production in the U.S. Favorable weather for soybean planting in South America and low sales rates of U.S. soybeans to China have ...