Biofuel Producers to Use a Lot of U.S. Soybean Oil Production

American biofuel manufacturers will use over half of all the soybean oil produced in the U.S. next year.

Agriculture Dot Com says a recent series of policy moves at the federal level have transformed the sector, including higher blending mandates and curbs on foreign biofuel imports and feedstocks. In its monthly supply and demand report, the USDA sharply raised its outlook for soybean oil use by biofuel producers in the 2025-2026 marketing year to a record 15.5 billion pounds, up 11.5 percent from last month. American soy oil exports were predicted to drop to 700 million pounds as more oil is consumed domestically, down from 2.6 billion pounds in the current season.

The Environmental Protection Agency significantly raised blending mandates under the Renewable Fuel Standard and proposed to cut the number of Renewable Identification Numbers generated for imported renewable fuels and renewable fuels produced from foreign feedstocks beginning in 2026.

Tags: exports, soybean oil, imports, U.S., biofuel