U.S. capacity for renewable diesel production rose to 2.134 billion gallons during Aug-Oct 2022, up 45 percent from capacity at the beginning of the year. This has affected the demand for soybean oil, the primary feedstock for renewable diesel. In the 2022/23 marketing period, it has been projected that we will see a 46 percent allocation of soybean oil towards the production of renewable diesel and other biofuels, up from the previous year’s 42 percent.
Bunge expects an increase in the capacity of renewable diesel by 2024. The estimation is for capacity rising to about 5 billion gallons. The U.S Environmental Protection Agency announced that oil refiners should include 20.82, 21.87, and 22.68 billion gallons of biofuels in 2023, 2024, and 2025, respectively, meaning that renewable diesel could soon account for a significant share of total biofuel utilization.
In November 2022, USDA recorded 5.7 million tons of soybean crushed, a 3.6 percent drop from the preceding month (5.9 million tons). With that crush volume, 2.2 billion pounds of crude oil were derived, representing a decline of 6 percent from October 2022.
Utilization of crude soybean oil for inedible use in processing increased from the previous month, remaining strong for the fourth consecutive month. Refined oil removed for edible use was 1.18 billion pounds, slowing from 1.20 billion pounds the previous year. Year over year, refined oil removed for inedible use rose from 424 million pounds in November 2021 to 483 million pounds in November 2022.
Soybean oil removed from stocks for inedible use
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