Futures activity
Jan-23 soybean meal futures closed at $424.10 per short ton on Friday, up $12.40 for the week. Jan-23 soybean oil futures fell precipitously last week, starting at $0.7312 per pound Monday and closing Friday at $0.6522 per pound, down 11 percent.
S&D and fundamental factors
- EPA’s proposed biofuels policy and mandates were released last Thursday, pegging the total biofuel mandate at 20.82 billion gallons in 2023, 21.87 billion in 2024, and 22.68 billion in 2025. Also noteworthy, EPA is allowing canola oil use as a feedstock for renewable diesel for jet fuel, heating oil, naphtha, and liquified petroleum gas under the RFS. For the first time ever, the program will also include incentives for electric vehicles (via RINs).
Weather, macro indicators, and news
- U.S. Ag Secretary Tom Vilsack met with Mexican President Andres Manuel Lopez Obrador over the latter’s plan to phase out genetically modified corn (including imports) by January 2024. During the meeting, Vilsack reportedly stated that the U.S. could respond to such a move through legal means under the USMCA trade agreement.
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