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S Illinois | 45Z will affect soybeans and the crush more as it stands right now. Soybean (or any oil seed)crush would start to be driven by soy oil instead of the traditional meal with regards to crush spread. If oil drives the demand, then meal becomes the “byproduct” that price lowers to find a home for instead of price being higher to ration demand when soybeans are crushed primarily for meal. So a big increase in soil oil means meal would become cheaper as 1 lb of soy oil means 4 lbs of soy meal is a by product and any substantial increase in oil demand means meal supply can build up rather quickly.
Corn is more of wildcard as there is acreage considerations and feed ration balances that will come into play. Tougher to say on the corn side as to what price will do. Right now renewable diesel is a more likely play than SAF which is ethanols hope to higher demand. | |
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Would Feed End Users Benefit from 45Z regs?
