Soybean oil futures surged by the most since July as traders bet that Chinese used cooking oil may be included on the list of tariffs expected to be announced by the US.

The Biden administration is set to raise tariffs on goods produced in China such as electric vehicles as early as next week, Bloomberg reported Friday, citing people familiar with the matter. The full scope of the incoming tariffs — including rates and the total list of sectors that will be impacted — is not clear. The White House declined to comment.

Speculation spread in the market Friday that imports of used cooking oil from China could be included in the batch of tariffs. The US market has been flooded with supplies in recent months to make biofuel, eroding profits for agriculture processing companies that crush soybeans. 

“Rumors abound that we may soon see levies against imported used cooking oil,” Susan Stroud, a grain analyst for No Bull Ag in St. Louis, said Friday. “Soybean oil is hanging on to any glimmer of hope we can to slow the flow of cheap, less-carbon intensive feedstock imports.”

Soybean oil futures settled 4.2% higher on Friday, after climbing as much as 5% intraday. The rise far outpaced gains in the larger market for whole soybeans, which settled 0.9% higher.