Rumor of RVO Delay Sends Soybean Oil Futures Spiraling Lower

Vegetable oil prices were mixed on Wednesday, with benchmark palm oil futures edging slightly higher, but soybean oil plunging due to renewed selling pressure. Soy oil futures retreated as funds liquidated long oil share positions after Reuters reported late July 20 the United States White House has delayed the release of Renewable Volume Obligations (RVOs) due to political considerations. Reuters reported in June that the Biden Administration was considering ways to give oil refiners relief from the blending mandates and rising RIN prices. However, the U.S. Environmental Protection Agency (EPA) was expected to announce this month the exact volumes refiners would be required to blend in 2021 and 2022 since the release had already been pushed back more than six months. Still, the session’s downturn in soybean oil prices is seen as a short-term correction in an overbought market. Nearby soybean oil futures settled…