Spot market activity in the US edible oils market was still subdued on Wednesday October 2. Most food and fuel buyers have covered their soybean oil positions through the end of this year, and this has been keeping a lid on demand in the cash market, sources told Fastmarkets.
In the meantime, deal making for the first quarter of 2025 and beyond has been virtually nonexistent due to ongoing market uncertainty regarding the upcoming US presidential election, US mandates and tax credits.
“There is still so much uncertainty on policy that many sellers and buyers are at a standstill for the first quarter of 2025 until guidelines are more defined,” one market source said.
After January 1, 2025, the $1-per-gallon Blenders’ Tax Credit (BTC) will be replaced by the Clean Fuel Production Credit (CFPC), or 45Z, and will be earned by the producer instead of the blender of the renewable fuel.
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