Bean oil drives BOGO lower as bean oil broke technical level of 40 cents per lbs. Generally such large break in Soybean oil is often a precursor for large breaks in Gasoil. Main reason for the break in Soybean oil outside of a large US soy crop is the CARB announcement on limiting crop based oil feedstocks for biofuels to 20% starting in 2028. This is on trend with what Europe has already been doing in limiting crop based feedstocks under RED. Crushing industry expansion in US is now greatly at risk despite fact that CARB announced that Renewable diesel accounted for 65% of the Diesel pool in Q1 2024 in California. A lot of this renewable diesel is low Carbon Intensity (CI) putting much of the midwest Soybean oil based RD at risk. Important to repeat the obvious fact that CI for vegetable oils is generally much higher than waste/recycled oils. Any political action in favor of vegetable oils would drive CI much higher and limit subsidies and markets for RD. This would drive many refiners to abandon RD production and return to refining mineral oil like Vertex Energy has done to be completed in Q4 2024 https://investors.vertexenergy.com/press-releases/press-releases-details/2024/Vertex-Energy-Announces-Second-Quarter-2024-Results/default.aspx
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