Global: Highlights of the USDA June 2024 Review

The US soybean oil price premium relative to competitors is declining The US soybean oil price premium relative to other major exporters has declined, and the US is expected to become a net exporter of soybean oil in 2024/25. Price increases over the past couple of years have been driven by increased domestic demand for soybean oil for biofuel production, particularly increased production of renewable diesel entering the California market. Demand for U.S. soybean oil, outpacing Argentine demand, peaked in the summer of 2023 as renewable diesel production increased. Since then, the share of soybean oil used in biofuel production has declined, in part due to increased use of other feedstocks such as lard, yellow fat and waste cooking oil, which are being encouraged by California policies. By comparison, soybean oil's share of commodity consumption fell from nearly 45 percent at the start of 2022 to less than 35 percent at the start of 2024. U.S. soybean oil production is projected ...