Vegetable oil prices decline in response to RFS updates
Market analyst Arlan Suderman with StoneX Group says the global vegetable oil markets are responding to the Environmental Protection Agency’s final Renewable Volume Obligations with significant losses.
“It was hoped by the market that the one week delay in releasing the RVOs would result in the EPA providing more support for those advanced biofuels, like renewable diesel, that use more edible oils like canola and soybean oils.”
Suderman says if it weren’t for the decline in crop ratings in this week’s USDA report, there could be weaker corn prices responding to EPA’s announcement.
Suderman says the news is a blow to the renewable diesel industry and while soy crush expansion is expected to move forward, it will likely advance at a slower pace.