NASHVILLE, TENN. (RFD NEWS) — Soybean crush demand is getting stronger support from federal biofuel policy, with new Renewable Fuel Standard targets tightening the soybean oil balance sheet. Oklahoma State University’s Dr. Todd Hubbs says EPA’s final rule sets much higher biomass-based diesel obligations for 2026 and 2027.
Hubbs says biomass-based diesel requirements jump to 9.07 billion RIN gallons in 2026 and 9.20 billion in 2027. That creates much stronger demand for D4 credits tied to biodiesel and renewable diesel.
The change matters because the RIN bank is expected to shrink sharply, leaving less cushion if production, imports, or feedstock supplies fall short.
Soybean oil is already feeling the pressure. Prices moved above 75 cents per pound in the first quarter as the market reacted to stronger policy signals.
USDA projects soybean oil use for biodiesel at 17.8 billion pounds in 2026/27, up from 14.2 billion.
Farm-Level Takeaway: Strong biofuel mandates should support soybean oil demand, crush margins, and soybean market strength.
Tony St. James, RFD News Markets Specialist
Senate Majority Leader John Thune says senators are trying to align the E15 effort with broader Farm Bill negotiations as producers continue grappling with weak farm income and elevated costs.
Soybeans accounted for nearly half of the $15 billion in losses on U.S. ag exports to China due to tariffs, according to researchers at North Dakota State University.
USDA says federal biofuel policy and growing renewable diesel capacity are increasing demand for feedstocks.
USDA says growing soybean output and expanding biofuel demand are helping drive the increase.
Emily Oberbroeckling says producers in northeast Iowa have made strong planting progress while continuing to monitor moisture conditions.
Corn inspections remain strong year-to-date, while China’s soybean and sorghum movement remains important to late-season export demand.
