In central Illinois, basis levels for crude-degummed and refined, bleached, and deodorized (RBD) soybean oil remain at multi-year lows. Basis has been on a downtrend due to slower-than-expected demand from the biofuel and non-biofuel sectors and ample supply in interior locations of the U.S. Buyers and sellers are at a standstill, with sellers holding out for higher prices, particularly with the recent rebound in soybean oil futures on the CME.

New renewable diesel plant start-up delays have contributed to a backup in feedstocks in the Midwest and a collapse in animal fat and other low CI feedstock prices. RBD soybean oil basis was down to 6.5-7.5 cents above March soybean oil futures. Prices should, in theory, rebound as new renewable diesel (RD) plants come online in the coming weeks and months. Still, values could still see pressure due to weak LCFS credit prices that are at multi-year lows and competition from canola oil.

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