The U.S. Department of Agriculture (USDA) has kept its forecast for soybean oil use in biofuel production unchanged for the 2024-25 marketing year, according to the latest World Agricultural Supply and Demand Estimates (WASDE) report, released on December 10. However, the USDA revised its estimate for 2023-24 soybean oil use in biofuels downward, reported Biodiesel Magazine.
The projections for soybean supply and use for the 2024-25 marketing year remain consistent with last month’s outlook. Soybean oil production was raised due to a higher extraction rate, and with strong export commitments, exports were increased by 500 million pounds to 1.12 billion pounds. However, food, feed, and other industrial uses of soybean oil were reduced by 200 million pounds, resulting in slightly lower ending stocks, which are expected to be similar to the 2023-24 marketing year.
As per the media report, for biofuel production, the USDA continues to forecast 14 billion pounds of soybean oil use in 2024-25, unchanged from the previous report. The 2023-24 biofuel forecast was revised down to 12.989 billion pounds, from an earlier estimate of 13 billion pounds. In comparison, approximately 12.51 billion pounds of soybean oil was used in biofuels for the 2022-23 marketing year.
The USDA also adjusted its price forecasts for soybeans and soybean products. The season-average soybean price is now projected at $10.20 per bushel, a decrease of 60 cents from the previous forecast. The price of soybean meal was lowered by $20, now forecast at $300 per short ton, while the soybean oil price remains unchanged at 43 cents per pound.
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