Three weeks into the 2021/22 marketing year, soybean oil export sales are well below volumes usually seen in October, and outstanding sales are at their lowest level since 2013/14. This is all in line with USDA’s current export forecast of 1.2 billion pounds, the lowest volume since 2005/06.
In 2021/22, USDA is forecasting U.S. biofuel manufacturers will use 11.0 billion pounds of soybean oil for biodiesel and renewable diesel, up a sizeable 25 percent in just one year. Many soybean processors are expanding crush capacity in anticipation of the deep demand for soybean oil for renewable diesel. Exports in this market will be a small segment of use and dependent on the health of the fuel sector.
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