July 21

7/21 - On June 13, the EPA released a new Renewable Fuel Standard proposal that mandates a 2B+ gallon jump in renewable diesel production to 5.61B gallons in 2026. 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 receive half the energy credits as domestic ones. That creates a financial incentive to use domestic feedstocks, particularly soybean oil. As a result, soy-oil futures have recovered from recent lows of $.4078 per pound in mid-March to close at $.5582 on Friday (7/18). In July’s WASDE, the USDA increased its soy-oil for biofuel estimate from 13.9B to 15.5B pounds (51.7% of total production) for the 2025/26 crop year. USDA also increased its 2025/26 soy-oil price forecast from $.46 to $.53 per pound.