Over the last week, U.S. interior soybean oil basis levels on crude-degummed (CD) and refined, bleached, and deoderized soybean oil (RBD) eased further. Trading activity continues to be thin due to reduced demand from renewable diesel and biodiesel producers.

The market is trying to assess demand during the first and second quarters of 2024, particularly from the biofuels sector. Some expect U.S. biodiesel production to decline sharply moving into the first quarter of 2024. Poor margins are expected to slow domestic biodiesel production heading into the first quarter of 2024.

Biomass biodiesel mandates are secure for 2023 and renewable identification number (RIN) production has led to an oversupply of credits, even when factoring in carryover RINs for 2024. Others project the startup of new renewable diesel (RD) plants in the coming months will boost consumption and be supportive for prices.