Soybean oil prices in Chicago rose 5.6% after a meeting to discuss increasing the biofuel mandate for the US

U.S. soybean oil futures and RIN credit prices have seen a significant increase this week, driven by discussions between the oil and biofuel industry officials about raising biofuel blending mandates, which is causing concerns due to potential fuel price hikes. The May soybean oil futures on the Chicago Board of Trade surged by 5.6% to $1,046/t, and soybean futures by 1.9% to $380/t. Despite a decrease in soybean processing in the US and an increase in soybean oil stocks, the price hike is seen as speculative. The U.S. Oil and Biofuels Coalition and the EPA are working towards introducing new biofuel blending quotas for the Renewable Fuel Standard, with major biofuel producers pushing for an increase in the mandate from the current 3.35 billion gallons to 5.5 or 5.75 billion gallons. However, concerns have been raised about the potential impact on job losses and higher fuel prices.

U.S. soybean oil futures and RIN credit prices rose sharply this week after oil and biofuel industry officials began discussing increasing biofuel blending mandates to present their proposals to the Trump administration. But the price hike is purely speculative, as such a move would raise fuel prices by 10-15%, something Trump had promised to reduce before the election. May soybean oil futures on the Chicago Board of Trade yesterday rose another 5.6% to $1,046/t (+12.3% for the week) amid talk of increased biodiesel production in 2026, although traders are not yet factoring in the possible impact of the US “trade war” against all countries starting on April 2. May soybean futures rose only 1.9% yesterday to $380/t (+3.3% for the week), confirming the speculative rise in oil prices. The volume of soybean processing in the US in February decreased by 11% compared to January to 5.143 million tons, which is 2.3% lower than in February 2024, while soybean oil stocks increased to 873 ...