Weekly Product Updates

W5 Soybean Oil Update: US Soy Complex Exports Contribute USD 39.8 Billion to Economy in 2022/23 MY

Refined Soybean Oil
Brazil
United States
Market & Price Trends
Published Feb 9, 2024
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Brazil's 2023/24 MY Soybean Harvest Forecasted at 153.5 MMT

Brazil's soybean harvest in the 2023/24 marketing year (MY) is projected at 153.5 million metric tons (mmt), down by 5.5 mmt compared to the previous harvest. This reduction will also impact exports, which are expected to reach 96.5 mmt, lower than the previous season's 101.9 mmt. However, domestic consumption is expected to rise due to increased demand for soybean oil following the biodiesel content increase in the diesel-oil mixture, benefiting the crushing industry.

US Soy Complex Exports Surge to USD 39.8 Billion in 2022/23/MY

In the 2022/23 MY, United States (US) soy complex exports, including whole soybeans, soybean meal, and soybean oil, contributed USD 39.8 billion to the US economy, a total volume of 67.6 mmt. Notably, US soybean meal exports achieved record highs in volume and value, reaching 13.2 MMT and USD 6.91 billion, respectively. However, US soybean oil exports experienced a significant decline of 82% from the five-year average, totaling 171.5 thousand mt, attributed to increased investment and demand for sustainable aviation fuel and other renewable fuels.

Despite that, total US soy complex exports to key markets like China, Mexico, the European Union (EU), Japan, and the Philippines remained strong. Vietnam notably experienced a 40% growth in US soy complex imports, while other markets such as the EU, Indonesia, South Korea, and China showed moderate year-over-year (YoY) growth. Although export volumes were consistent with the previous five-year average, higher prices led to a significant increase in the value of US soy complex exports, rising 35.9% above the five-year average from 2018/19 to 2022/23. This growth underscores the global impact of US-produced soy, with the U.S. Soy brand dedicated to addressing global nutrition, climate solutions, and community support through industry innovation and collaborative efforts.

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