US use of soybean oil for biofuel reached a new monthly record in July, according to USDA's Economic Research Service, All Ag News reports. Biofuel producers used 1.687 billion pounds of soybean oil in July 2026, 8.4% more than the previous record set in June.
USDA continues to forecast 14.8 billion pounds of soybean oil going to biofuel in 2025/26 and 17.8 billion pounds in 2026/27. It raised its forecast of soybean oil imports for 2026/27 to 700 million pounds.
Supplies have tightened because a lower late-season crush and a reduced oil extraction rate cut 2025/26 production. Ending stocks for that marketing year are forecast at 1.66 billion pounds, 180 million pounds less than last month's estimate. The 2026/27 soybean oil price forecast is unchanged at 70 cents a pound.
Renewable fuel has become a major source of demand for US soybean processing, and strong biofuel use makes soybean oil more important to crush economics and to domestic demand for soybeans, the report says. It is by Tony St. James.
Photo: Spatms / Wikimedia Commons (CC BY-SA 4.0)
Source: All Ag News
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