At the US vegetable oil cash market, central Illinois and Gulf crude-degummed soybean oil basis indications were slightly lower on the week as of Tuesday July 30.

Soybean oil basis levels have started to peel back amid recent weakness in soybean oil futures, market sources said on Tuesday.

The soybean oil futures market was down for a third consecutive day on Tuesday in the wake of the US Court of Appeals’ ruling issued on Friday July 26 that vacated most of the small refinery exemption (SRE) denials under the US Renewable Fuel Standard (RFS) by the Environmental Protection Agency (EPA) in 2022.

The court decision could potentially reduce overall demand from US biodiesel. Soybean oil is one of the primary vegetable oil feedstocks used in the production of biodiesel and renewable diesel.

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