Soybean Oil Unit Train Expands Domestic Farm Demand

A first-ever unit train of soybean oil from Nebraska signals that new crush capacity is creating larger domestic markets for farmers’ soybeans.

Bottles of oil on counter in shop, Pattern of vegetable oil bottles at factory warehouse store or supermarket_photo by sirirat via AdobeStock_821696498.jpg

Photo by sirirat via Adobe Stock

NASHVILLE, Tenn. (RFD News) — A first-ever unit train of soybean oil from Nebraska signals that new crush capacity is creating larger domestic markets for farmers’ soybeans. The shipment also shows processors are building efficient links between rural plants and renewable fuel customers.

Ag Processing Inc. loaded the train at its David City plant, which opened in 2025 and can crush 50 million bushels annually. The facility can produce nearly 700 million pounds of soybean oil and connects with BNSF and Union Pacific service.

Unit trains can move large volumes more efficiently than small rail shipments, potentially lowering freight costs and expanding access to buyers. That could support regional soybean demand and basis as more processing comes online.

California remains a leading destination because five renewable diesel plants can produce about 1.7 billion gallons of renewable diesel annually. U.S. railroads moved an estimated 7.6 million tons of soybean oil in 2024, up from 5.5 million tons in 2020.

Processors will watch whether more crush plants adopt unit-train shipments. Wider use could strengthen domestic soybean demand, improve logistics, and create more value for farmer-owned cooperatives.

Farm-Level Takeaway: More efficient soybean oil shipments could strengthen regional demand and improve basis for producers.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

USDA data shows larger operations continue to lower production costs while reshaping the U.S. hog industry.
BNSF plans to increase rates by $150 to $250 per car on many Northern Plains routes, depending on origin and destination. CPKC will raise most U.S. wheat tariff rates by $225 per car.
USDA recommends producers contact their local Farm Service Agency office as soon as practical after a qualifying disaster to discuss available programs and reporting requirements.
Residents should examine water sources, drought restrictions, peak power demand, tax incentives, permanent jobs, noise limits, expansion plans, and enforceable decommissioning requirements before approving a project.
Heat, Rain Shape Crops As Harvests Advance Nationwide
Agragene plans to target spotted wing drosophila before expanding the technology to livestock pests.