Tracking Biodiesel and Oilseed Markets

Robobank has been closely tracking biodiesel and oilseed markets, working to expand opportunities for soybeans while protecting access to key markets. Owen Wagner, vice president of grains and oil seeds analysis at Robobank, shares an update on current developments shaping the future of oil seeds.

“Really positive development last June when the EPA released the renewable volume obligation, we saw, we saw a big jump in the proposed volumes for soybean oil, also with some promises that those would be finalized by the end of 2025, calendar year. And there was a few other kind of bells and whistles that were put out there as part of that RVO also some things that were baked into the big, beautiful bill regarding incentives, but in terms of the RVO, things like limiting the amount of RIN generation from imported feed stocks, that was a big factor that was that was put out there.”

While the finalization of the RVO, like the cap on imported feed stocks last year, they are hoping for finalization this spring.

We're hearing rumblings out of DC that we'll get finalization on that by March, sometime, and that's credibly important. What we're hearing is that we'll likely get volumes very close to what was proposed back in June. So that's a major win for the sector, but this losing the cap, we're likely to lose the cap on imported feed stocks, which I would argue is probably a bearish influence for soybean oil markets.

Robobank’s, Owen Wagner.