(Bloomberg) -- Soybean oil prices rose in Chicago amid speculation that a new biofuels plant in California has received the green light to start operating in a few weeks.

The Phillips 66 facility in Rodeo, California, has received environmental approval to start operating soon, a Zacks report said. That pushed most-active soybean oil futures up 2.7%, the biggest daily advance since. Dec. 7. 

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

“This is a big project,” said Victor Martins, Latin America risk manager at brokerage Amius Ltd., and is an indication of more demand for soy oil in the US. Palm oil and crude oil futures also advanced on Monday.

A mix of excessive production in the US and a return of output in Argentina have weighed on prices in recent months.

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