For a second straight session, soybean oil futures on the Chicago Mercantile Exchange plunged on Monday July 29. Prices were under additional selling pressure on Monday and sank to multi-year lows on Friday July 26 after the US Court of Appeals vacated most of the small refinery exemption (SRE) denials under the US Renewable Fuel Standard (RFS) by the Environmental Protection Agency (EPA) in 2022.

On Monday, the front-month August soybean oil futures contract settled at $0.4284 per lb, down by 82 basis points per lb, or 1.88%, from a close of $0.4366 per lb on Friday.

The RFS requires oil refiners to either blend billions of gallons of biofuel into the nation’s fuel mix, or to purchase tradable credits called renewable identification numbers, or RINs, from other blenders or producers.

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