The USDA has made some significant changes to its forecasts for soybean oil demand in the United States — Brown

On Friday, the U.S. Department of Agriculture made significant changes to its soybean oil demand forecasts for the United States for 2025-2026, which begins on October 1. The agency cited recent blending requirements, tax incentives, and restrictions on foreign raw material imports. Soybean oil consumption for biofuel production in the U.S. is projected to reach a record 15.5 billion pounds in 2025-2026, which is 23% higher than the three-year average and 12% higher than the USDA's June estimate. The department reduced exports in 2025-2026 to meet growing domestic demand. New data shows that biofuel will account for more than half of total U.S. soybean oil consumption for the first time in history — approximately 53%. Consequently, soybean processing volume in the U.S. in 2025-2026 is expected to reach a new record of 2.54 billion bushels. This will represent 58% of total domestic production reduction, which will be the highest level in 18 years and further undermine exports. The ...