June 16

6/16 – On Friday, the Trump administration released a Renewable Fuel Standard proposal that would mandate a record 24.02B gallons of biofuels be blended in 2026, with renewable diesel seeing a 2B+ gallon jump to 5.61B gallons in 2026, and 5.86B in 2027. Additionally, the EPA slashed the Renewable Identification Numbers (RINs) on imported biofuel feedstocks (like used cooking oil from China) by 50%. It means that for the same volume of fuel, foreign feedstocks and imported biofuels would only get half the energy credits as domestic biofuels and feedstocks. That creates a financial incentive to use domestic feedstock, particularly soybean oil. Soy-oil futures have recovered from recent lows of $.4078 per pound in mid-March to close at $.5061 on Friday (6/13). In last week’s WASDE, the USDA projected soy-oil prices to average $.46/lb. in 2025/26. Look for the USDA to ratchet up that forecast in the coming months.