April 28

4/28 - The Farmer First Fuel Incentives Act has been reintroduced in Congress as a bipartisan bill and is likely to be passed into law. It updates/restricts eligibility for the 45Z Clean Fuel Production Tax Credit to renewable fuels made only from domestically sourced feedstocks. The bill would effectively kill imports of used cooking oil (UCO) from China for biofuels - and put upward price pressure on U.S. veg-oils, tallow, and domestic UCO. Separately, a weaker U.S. dollar, combined with record high global palm oil prices, have already been bullish factors for soybean oil prices – even prior to any legislative changes. In April’s Oil Crops Outlook, the USDA jacked up its U.S. soy-oil export forecast (for the 2024/25 crop year) by 29%, from 1.8B to 2.3B pounds. Taken together, this wave of bullish data has helped soy-oil futures recover from recent lows of $.4078 per pound in mid-March to close at $.4928 on Friday (4/25).