U.S. Biodiesel Policy Boosts Soybean Oil Demand
The United States' biodiesel policy for the upcoming fiscal year has been finalized, resulting in a significant surge in demand for soybean oil. According to SunSirs, the mandatory biodiesel blending targets for 2026/27 have driven a 25.25% year-on-year increase in industrial demand for soybean oil. This increased demand comes as weekly U.S. soybean oil inventories have fallen to a three-month low.
The spot market is experiencing a bullish trend, with prices bolstered by the tight supply-demand balance. The most active soybean oil contract on the Dalian Commodity Exchange closed at 8,389 RMB/tonne, with a settlement price of 8,394 RMB/tonne.