Soybean oil holds near multi-year highs amid elevated energy prices

US soybean oil futures remain near multi-year highs amid elevated crude oil prices, strong biofuel demand and increased Chinese purchases of US soybeans. Geopolitical tensions in the Middle East are also providing support by maintaining a risk premium in energy markets.

WTI traded near $102/barrel this week, while Brent remained above $107/barrel. Higher crude oil prices improve the competitiveness of biodiesel and support demand for soybean oil as a feedstock. Indonesia’s expansion of its B50 biodiesel program is another supportive factor for the broader vegetable oil market.

US biofuel policy is also underpinning the market. In March 2026, the EPA set a record biomass-based diesel volume of 5.4 bln gallons for 2026 under the Renewable Fuel Standard. Expectations surrounding the decision had already contributed to a strong rise in soybean oil futures in late 2025 and early 2026.

Chinese demand remains another important factor. According to EdgeClear, Chinese buyers purchased around 1 mln tons of US soybeans over the past week, supporting the broader soybean complex. At the same time, US crop conditions were assessed as stable, with 58% of soybean acreage rated good to excellent.

The soybean oil market is currently consolidating after a strong rally in the first half of the year. Further price direction will depend on crude oil prices, biofuel policy developments and demand for US soybeans, while geopolitical risks remain an important external factor for the market.

Tags: soybean oil, prices, global market