Soyabean oil consumption by the US biofuel industry, including biodiesel and renewable diesel producers, reached a record high in June, driven by strong domestic demand for low-carbon-intensity feedstocks, Oils & Fats International reported.
According to US Energy Information Administration (EIA) data cited by Fastmarkets, domestic biofuel producers consumed a record 1.56 billion pounds (707,604 tonnes) of soyabean oil in June. Consumption increased 9% from 1.43 billion pounds (648,637 tonnes) in May and was 49% higher than the 1.043 billion pounds (473,096 tonnes) consumed in June 2025.
The biodiesel sector accounted for 790 million pounds (358,337 tonnes) of soyabean oil consumption in June, up 5.8% from 747 million pounds (338,833 tonnes) in May. Renewable diesel producers used 766 million pounds (347,451 tonnes), an 11.5% increase from 687 million pounds (311,617 tonnes) in May.
Fastmarkets said US biofuel producers had increased their use of soyabean oil since the first quarter of the year following the finalisation of US biofuel blending mandates for 2026-27 and changes to the 45Z Clean Fuel Production Credit earlier this year.
Soyabean oil accounted for 41.2% of the total US low-carbon-intensity feedstock pool in June, compared with 39% in May and 36% in April. Its share had previously reached 50-60% during 2020-22 before declining to 30-35% of total US feedstocks in 2024 and 2025 amid softer domestic demand and increased availability of lower-cost imported low-carbon-intensity feedstocks.
Other feedstocks recorded mixed trends during June. Canola oil consumption increased 9.2% month-on-month to 320 million pounds (145,149 tonnes), from 293 million pounds (132,902 tonnes) in May. Its share of the total US feedstock mix rose to 8.5% from 8%.
Tallow consumption declined 5.2% to 754 million pounds (342,008 tonnes) from 796 million pounds (361,059 tonnes) in May. It accounted for nearly 20% of the total feedstock pool, down from 22% in May.
Distillers corn oil (DCO) consumption fell for a second consecutive month to 365 million pounds (165,561 tonnes), down 20% from 457 million pounds in May and 23.5% from the record 477 million pounds (216,363 tonnes) consumed in April. DCO’s share of total feedstocks fell to 9.7% in June from 12% in May and nearly 15% in April.
Used cooking oil (UCO) consumption, meanwhile, rose to 689 million pounds (312,525 tonnes), its highest level since August 2024. This represented a 14% increase from 605 million pounds (274,423 tonnes) in the comparable period and accounted for 18.3% of the total US feedstock mix.
USDA data published on September 1 also indicated strong domestic demand for soyabean oil in July. Soyabean oil stocks at the end of July stood at 1.963 billion pounds (890,401 tonnes), down 6.4% from 2.097 billion pounds (951,183 tonnes) at the end of June.
At the same time, US soyabean crushing continued to rise, reaching a record high in July amid strong processing margins and solid domestic demand for soyabean oil.
US processors crushed 222 million bushels of soyabeans in July, up from 218 million bushels in June and 205 million bushels in July 2025. Crushing increased for a second consecutive month after declining in May, when several processors shut plants for planned seasonal maintenance and repairs despite record-high margins.
