Global: Highlights of the USDA June 2024 Review

Published Jun 13, 2024

Tridge summary

The US soybean oil price premium has decreased, with the US set to become a net exporter in 2024/25 due to rising biofuel demand, though soybean oil's share in biofuel production has fallen. US soybean oil production is expected to hit record levels, leading to higher inventories and lower prices. Global soymeal exports have surged, driven by Argentina and Brazil, despite adverse conditions. However, global oilseed production forecasts have been cut due to lower rapeseed output in Australia. Meanwhile, global oilseed meal trade has risen, particularly from the US. Reduced groundnut production in India has led to a decline in overall production, but global meal exports have increased due to higher soybean meal exports from the US and India. The trade volume in vegetable oil remains stable, and US soybean prices are steady at $12.55 per bushel, with prices easing after the latest WASDE report.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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 ...
Source: Oilworld
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