[Listen] MSGA Mike Youngerberg the End of Biodiesel?
It was about 3 weeks ago it seemed all grain traders could talk about were reports that the Biden Administration was going to roll back or even eliminate biodiesel blending mandates. Most of the biodiesel is made from soybean oil and a small amount from animal fat. The reports were somewhat correct in that some Senators did talk with the Biden Administration about decreasing the use of biodiesel and increasing diesel fuel made from crude oil. However, there has been no word from the Administration about actual decreasing biodiesel requirements of more small refinery exemptions.
It is rather ironic that there is talk or rumors about decreasing the use of biodiesel while last winter the Biden Administration was talking about increasing biodiesel blends dramatically. There was even a proposal to require ocean going ships would need to blend in biodiesel. Currently ships are allowed to burn really low grade oil that has been described as "nasty stuff." Blending biodiesel results in a much cleaner burning fuel.
In addition blending higher levels of biodiesel is an answer to carbon dioxide and climate change, global warming or whatever you want to call it. Because higher blends of biodiesel burns cleaner, less carbon dioxide is produced. So, it seems illogical that the Biden Administration would lower biodiesel blending requirements?
All this has had a dramatic impact on soybean prices paid to farmers. Last winter the price of soybean oil rallied higher pulling soybeans higher. Then when the "talk or rumors" of less biodiesel demand soybean oil prices dropped like a stone and soybeans followed down too. Click on the link and listen to Mike Youngerberg with the Minnesota Soybean Growers talk about biodiesel and blending requirements.
Not sure why, but people in Minnesota and Wisconsin have more than one of these 15 items.