Demand for biodiesel is expected to remain strong, with the US Department of Agriculture keeping its forecast for soybean oil use in biofuel production unchanged for 2025–26, while raising price estimates in its latest global supply and demand report, Biodiesel Magazine reported.
The USDA said 14 billion pounds of soybean oil will be used for biodiesel and other biofuels in 2025–26, higher than 11.758 billion pounds in 2024–25 and 12.995 billion pounds in 2023–24.
For the United States, the outlook points to higher soybean crushing at 2.61 billion bushels, supported by stronger domestic demand for soybean meal. Exports are projected to fall to 1.54 billion bushels due to increased competition from South America, while ending stocks remain unchanged at 350 million bushels.
The agency also revised price projections upward, estimating soybean prices at $10.30 per bushel. Soybean meal prices were increased to $310 per short ton, and soybean oil prices are now pegged at 59 cents per pound.
Globally, soybean supply is expected to increase on the back of higher beginning stocks and improved production, particularly in Brazil, where output estimates have been revised upward.
At the same time, global soybean use is set to rise, with higher crushing activity in key markets such as the United States, Brazil and Algeria. Despite steady exports, global ending stocks are projected to decline slightly to 124.8 million tonnes due to lower inventories in major producing countries.
The report highlights continued support for biodiesel demand even as global soybean supplies remain adequate, with firm prices reflecting steady consumption trends.
