Strong demand from the biodiesel and renewable diesel industries has pushed US soybean oil prices to their highest level in more than four years, lifting soybean prices above $11 per bushel for the first time in two years and improving prospects for American growers.
The rally follows the US Environmental Protection Agency’s Renewable Fuel Standard (RFS) requirements for 2026 and 2027, which have encouraged higher biofuel production and fresh investments in soybean processing and renewable fuel capacity, Farm Progress reported.
The stronger demand is also driving expansion in agricultural infrastructure. A new soybean processing plant in Gilman, Illinois, with a capacity of 300,000 bushels per day, has added another market for about 7,000 farms, while several additional processing facilities are under development.
Biofuel production has continued to accelerate, with biodiesel, renewable diesel and sustainable aviation fuel (SAF) producers increasing consumption of feedstocks such as soybean oil, distillers corn oil from ethanol plants, used cooking oil and animal fats.
The industry’s growth, however, faces legal challenges. A coalition of oil refiners and environmental groups, led by the Center for Biological Diversity, has challenged the EPA’s renewable fuel blending targets in court, arguing that the mandated volumes are too high.
The Clean Fuels Alliance America, which represents the biodiesel industry, has defended the policy, saying the Renewable Fuel Standard supports farm incomes, rural investment and domestic fuel production.
According to the industry group, biofuels currently supply about 10% of US on-road diesel demand, with that share expected to increase further as new renewable diesel and sustainable aviation fuel capacity becomes operational.
