Growing biodiesel production in Brazil boosts demand for soybean oil

In the second quarter of 2025, biodiesel production in Brazil increased by 5.6% year-on-year to 2.08 million tons, and from January to June the figure reached 3.97 million tons (+7.3%). According to German analysts Oil World, this stimulated more active use of soybean oil as a raw material: in April-June its volume in biofuel production increased by 10% to 1.6 million tons.

The share of soybean oil in biodiesel production in May and June broke the record, reaching 79%. Despite this, soybean oil exports from Brazil during this period remained almost unchanged, remaining at 420 thousand tons, while domestic production increased by 200-300 thousand tons. The bulk of the biodiesel exported in April-June was sent to the EU – the volume of supplies exceeded 61 thousand. tons, which is twice as much as last year.

The growth in domestic diesel consumption is also supporting demand for biodiesel: according to the results of the first five months of 2025, domestic sales were 3% higher than last year. Against the background of increasing requirements for biofuel production in the US in the 2025/26 season, soybean oil futures on the Chicago Board of Trade have increased by 17% in the recent period alone and by 19% since the beginning of the year.

Tags: soybean oil