Soybeans and Palm Respond to New Biofuel Targets

Driven by the disclosure of official renewable fuel targets in the United States, the vegetable oils market closed the last week with a strong rise, according to StoneX information. The Environmental Protection Agency (EPA) proposal defined the Renewable Fuel Obligations (RVOs) for 2026 and 2027, encouraging investors and raising soybean and palm oil quotations. In the case of soybean oil, after a week of stability, the reaction came with force on Friday, the day of the official document's publication. The July 2025 contract closed with a 6.5% appreciation, quoted at US¢ 50.6 per pound-weight. This Monday (16), the upward movement intensified: soybean oil was trading at around US¢ 54.45/lb by late morning, representing an advance of over 7% and reaching the highest value for the first maturity since October 2023. The palm oil market had a mixed behavior. Despite being pressured for most of the week due to the confirmation of increased production and stocks in Malaysia, the product ...