Last night, US President Trump signed a bill that would adjust the EPA biodiesel addition program (November 2016, the US EPA bill announced that the 2017 biodiesel blend standard was raised from 20 billion gallons to 20 billion gallons in 2016, 2018 Raised to 2.1 billion gallons; the total renewable fuel blending from 1816 18.1 billion gallons, up to 20.19.2 billion gallons in 2017), to stimulate the US soybean oil rebounded sharply.
At the same time, the US Energy Information Center report shows that the United States in December last year, bio-diesel production reached a record high of 143 million gallons, soybean oil consumption of bio-diesel also hit a record high of 106 million pounds. Therefore, the market is expected in the future US domestic soybean oil consumption will increase. However, for the other varieties of oil, palm, the market is expected early growth of horse brown production trend or trend, the expected bearish bearish.
In the United States biodiesel to add the news of the stimulus, domestic and foreign oil varieties rebounded sharply from the decline, overnight, the Chicago Board of Trade May soybean futures rose 27 cents, May soybean oil futures rose 1.91 cents, plate In the highest reached 34.74 / lb, once the highest increase of 5%. March 1, Dalian soybean oil main contract y1705 opening price of 6616 yuan / ton, closing at 6652 yuan / ton, up 84 yuan / ton, or 1.28%.
At the same time, according to traders, in Rizhao area Rizhao Port a soybean oil offer 6860 yuan / ton, factory grade soybean oil offer 6880 yuan / ton. Driven by Trump bio-fuel policy, short-term domestic soybean oil market or soybean oil market will have more emotions.
"If Trump approved the renewable biofuels, will help the US soybean consumption, speed up the soybean, corn to inventory, support prices.Because the biofuel policy to promote the demand for soybeans to promote the soybean price stability or rise, to stimulate more Soybean cultivation. "Brick agricultural consulting analyst Lin Guofa in an interview with" China Times "reporter said.
In addition, Lin said that the production of biodiesel need to squeeze more soybeans, which will lead to high supply of soybean meal. At the same time, China's domestic corn to inventory under the premise of tightening the DDGS imports, DDGS as an important alternative to soybean meal, which will lead to the United States DDGS sales pressure. A large number of pressed soybeans, with soybean meal supply increased, the US soybean meal prices will be under pressure, and soybean oil for the production of biodiesel, the demand for good support for soybean oil prices rise further. It is expected that once the implementation of the policy will make the US meal prices soared.