USDA’s latest forecast for soybean oil has seen a downturn for use in biofuels.
World Agricultural Outlook Board Chair, Mark Jekanowski says the reduction of 200 million pounds comes from increasing imports of used cooking oil and yellow grease from Asia, stating that this directly competes with soybean oil and the production of renewable diesel. However, he mentions we should see some growth for the new crop year.
“We’re still forecasting about $12 billion of soybean oil to be used for biofuel and that would be up $1.5 billion from the previous crop year from the current crop year at 2021 and 2022,” said Jekanowski.
The U.S. produced 1.8 billion gallons of biodiesel in 2020, exporting 145 million gallons.
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