US soybean oil hits 2022 high on biofuel targets and import curbs
Updated
Updated · UkrAgroConsult · May 4
US soybean oil hits 2022 high on biofuel targets and import curbs
14 articles · Updated · UkrAgroConsult · May 4
May futures on the Chicago market climbed 5.2% in a week to $1,656 a tonne, up 7.7% on the month and 57% year on year.
EPA targets imply biodiesel and renewable diesel output rising from 3.35 billion gallons in 2025 to 5.4 billion in 2026, but analysts doubt producers can expand fast enough.
Plants in Iowa and Minnesota are restarting or running harder, yet labour, logistics and construction costs constrain growth, risking RIN shortages and higher diesel prices despite rising soybean oil inventories.
As US soybean oil inventories grow, can domestic prices continue to defy the far cheaper global market?
Can the US biodiesel industry meet aggressive new mandates without triggering a diesel price crisis?
Will soaring biofuel demand force a pivot from food crops to more sustainable next-generation feedstocks?