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
USDA says both crops remain ahead of the five-year average as farmers continue monitoring dry Corn Belt conditions.
Corn exports remained active the week of May 7, but weak soybean, cotton, and sorghum sales kept attention on China and late-year demand.
In agricultural transactions, timing is often far more than a matter of convenience. A delayed closing or missed payment can lead to a major financial problem.
Dave Walton with the American Soybean Association joins us to discuss China’s new ag purchase commitments, E15 policy concerns, and spring planting conditions.
RealAg Radio Host Shaun Haney joins us to discuss the latest U.S.-China ag trade agreements, market reaction, and what producers should watch moving forward.
The Byrum family says bringing the next generation back to the farm is helping strengthen both the operation and the family bond.
