Biodiesel production consuming near-record soybean oil volumes
Biodiesel production in July increased 7 percent from June and, at 162 million gallons, was up 2 percent from a year ago, as diesel fuel demand from the shipping sector supported biodiesel demand. Sales of B100 for blending totaled 98 million gallons, the highest monthly volume since December 2018 and the same level of sales seen in July 2018.
U.S. biodiesel production in 2020 has tracked 2018 very closely, falling off a bit in June and regaining some lost ground in July. Blending rates dropped notably during March through May, but June and July use showed good recovery, and monthly stocks of biodiesel declined in June and July, as well.
Soybean oil use for biodiesel totaled 775 million pounds in July, nearly tying May’s record and up 9 percent from July 2019. Since February, monthly soybean oil use has averaged 11 percent higher YOY and since April, soybean oil has been the feedstock for at least 60 percent of each month’s biodiesel production.
The recovery in ethanol production allowed more use of corn oil for biodiesel in July, with manufacturers consuming 133 million pounds of corn oil—up 42 percent from June but down 14 percent from a year ago.
Monthly utilization of major biodiesel feedstocks
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