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.
