New California Biofuels Plant Impacts Soybean Market

The increasing use of biofuels should generate bullish vibes for agricultural commodities in the future.

E-T-F Trends says plans for a biofuel plant in California could spur more investors to take a closer look at agricultural commodities.

California has one of the more ambitious plans when it comes to reducing carbon emissions.

Given this, the use of a biofuel plant could spur other states to follow suit.

In turn, that would increase demand for agricultural commodities like soybeans and corn.

A Bloomberg report confirmed that soybean oil prices in Chicago rose amid speculation that the new biofuels plant in California got the green light to begin operations in a few weeks.

The plant is a former crude oil refinery that will use waste oils, fats, greases, and vegetable oils to produce an initial 800 million gallons of renewable fuels a year, including renewable diesel, renewable gasoline, and sustainable aviation fuel.