Skip to main content
A free sample of high oleic soybean oil and shortening

U.S. Soy News
and Industry Updates

Keep up-to-date with the latest QUALISOY and U.S. Soy news.

Industry Updates

USDA Sees Record Demand For Soybean Oil As Biodiesel Feedstock

In late October, the U.S. Environmental Protection Agency’s (EPA) decided not to move forward with reducing the biomass-based diesel and advanced biofuel requirements after the organization received backlash from corn-state lawmakers who expressed concerns that the moves would undercut ethanol demand.1 In the USDA’s December supply demand update (WASDE), demand for soybean oil during the current marketing year as biodiesel feedstock was raised from 7 billion pounds to 7.5 billion pounds, a record amount.2

The WASDE also showed reduced domestic usage of soybean oil of 300 million pounds, so the net increase in forecast usage is only 200 million pounds. This did not affect future prices subsequent to the report. The USDA’s forecast cash price for soybean oil during the marketing year is an unchanged 34.5c/lb., which is a 2c/lb. increase from 2016’s average price. There were no significant changes to the soybean and soybean meal supply and demand projections in this report.

Expect the soybean oil price to display a soft tendency in the near term and to follow petroleum prices, longer term.


Jarrett Renshaw. “EPA Abandons Changes to U.S. Biofuel Program after Lawmaker Pressure.” Reuters. October 20, 2017.
2 “World Agricultural Supply Demand Estimates.” United States Department of Agriculture. December 12, 2017.

Join companies making the switch to U.S. grown high oleic soybean oil