May WASDE Forecasts 25% Increase in Soybean Oil Use for Biofuel in 2026/27

The latest WASDE report expects a significant expansion in soybean oil use for biofuel production during the 2026/27 marketing year.

The current outlook for soybeans points to higher supplies, stronger crushing activity and increased exports, while ending stocks are expected to decline compared with previous seasons. The soybean crop is forecast at 4.435 billion bushels, up 173 million bushels from the previous year.

Soybean crushing is projected at 2.750 billion bushels, supported by favorable crush margins and strong demand for soybean oil as a biofuel feedstock. Domestic soybean meal use is also expected to rise, while soybean meal exports are forecast to remain important to global trade.

Total soybean oil demand is expected to increase by 7% in 2026/27. Around 17.8 billion pounds of soybean oil are expected to be used for biofuel production, compared with 14.2 billion pounds estimated for 2025/26 and 11.758 billion pounds in 2024/25.

Soybean oil exports are expected to decline as stronger domestic demand limits availability for external markets. The season-average soybean price is estimated at US$11.40 per bushel, while soybean oil prices are expected to rise to 70 cents per pound.

Source: Biomass Magazine

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