Soybean Oil

The most consumed vegetable oil, split between food and renewable diesel feedstock.

Overview

Output runs near 60 million tonnes with China crushing the most. Oil is the minority share of the bean by value, which makes oil led rallies, as renewable diesel demand did from 2021, unusual and powerful, since growing oil supply means growing meal whether feed markets want it or not. US policy, blender credits evolving into clean fuel credits, and imported used cooking oil competition set the outlook. Chicago trades 60,000 pound contracts, and palm oil in Malaysia competes for the vegetable oil dollar alongside sunflower and rapeseed. Indonesian biodiesel mandates and levies move palm, and the soy palm spread arbitrages the world frying economy.