The November World Agricultural Supply and Demand Estimates (WASDE) report has lowered its projection for soybean oil use in biofuel production for the 2024–25 marketing year. According to the latest outlook, the USDA revised its estimate downward due to slower-than-expected growth in renewable diesel capacity, along with reduced domestic demand from biofuel producers. Industry analysts note that fluctuating energy markets, evolving government policies, and feedstock competition have contributed to the adjusted forecast.
Despite the reduction in soybean oil demand for biofuel, the WASDE report maintains outlook stability for overall soybean crush volumes, indicating continued demand from the food and industrial sectors. However, analysts suggest that ongoing shifts in federal biofuel blending mandates and renewable fuel incentives could influence future revisions. Export prospects, crude oil price trends, and renewable diesel plant expansions remain key.
actors to watch in the coming months as the market adjusts to updated demand expectations.
