Soyoil Usage

13 June 2021

Soyoil Usage

The world is increasingly using soybean oil in industrial usage, mainly in production of biodiesel across the globe and lately the increase is led by USA.


In its May report, the USDA put 2021/22 soyoil usage in making biodiesel at 5.44 MMT versus 4.31 million last year and 3.93 in MY 2019/20. Soyoil consumption in biodiesel in US has increased from mere 42 KMT to 5.44 MMT in just 20 years.

Rest of the World

For the rest of the world, the usage is stagnant between 7.1 and 7.36 MMT for five years. Global usage has jumped from less than 1 MMT to 12.7 MMT in a span of 20 years.

USA and Brazil have led the pack, when it comes to the industrial usage increase of soybean oil. Increases in Brazil have largely been balanced by drop in Argentine since 2017/18. In European Union, the usage has plateaued long back, while the rest of the world is a mere spectator.

Going Forward

The economics of biodiesel production relies on the prices of crude oil and the local government regulations. We remain skeptical that at current crude oil and soyoil prices, it will remain feasible to increase fuel production out of the edible oil. The entire curve of new crop soyoil contracts at CME is trading above 0.62/lbs.