Key insights
- Soybean oil prices are nearing a three-year high due to rising crude oil prices from Iran tensions and increased biofuel demand following new US blending standards. This mandate boosts demand for biomass-based diesel, particularly soybean oil, potentially contributing to inflationary pressures in food and energy sectors.
Investing.com -- Soybean oil climbed as much as 3.4% in Chicago as higher crude oil costs prompted by the Iran war continued to boost the biofuel sector.
Prices for soyoil, used to make renewable diesel and foods such as salad dressing, are nearing a fresh three-year high after US President Donald Trump threatened to hit Iranian energy assets while crude oil advanced.
The soyoil jump comes after the White House on Friday unveiled long-awaited biofuels blending standards that increase requirements for fuels made from crops. The mandate "materially increases biomass-based diesel demand in 2026, underpinning feedstock demand, especially soybean oil," No Bull Ag analyst Susan Stroud said.
Soyoil for May delivery rose to 69.68 cents per pound, just below a March 9 peak that marked the highest since late 2022. Investors are the most bullish on soybean oil in nearly a decade, according to regulatory data.
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