Vegetable oil cash trading was quiet on Tuesday. Thinner demand for soybean oil and ongoing pressure on U.S. Renewable Identification Numbers (RINs) have kept basis levels within recent ranges. 

Even though a host of new U.S. renewable diesel (RD) production capacity is expected to start-up during the first half of 2024, interior demand for soybean oil has been muted because many RD producers are well-covered through the fourth quarter and into the first quarter of 2024. The erosion in RINs, as record biofuels production outpaces federal mandates, has caused many to worry that soybean oil demand could recede further if plants cannot capture favorable margins.

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