US biofuel demand for soybean oil jumps 52% to a new record

US biofuel producers used a record 1.687 billion lb of soybean oil in July 2026, up 8.4% from June and around 52% y/y, according to data from the US Energy Information Administration (EIA).

The strongest growth came from the renewable diesel sector, which consumed a record 871 million lb of soybean oil, up 13.8% m/m. Renewable diesel accounted for around 80% of the monthly increase in soybean oil use, while biodiesel plants consumed 816 million lb.

Total vegetable oil consumption by the US biofuel sector also reached a record 2.571 billion lb in July, rising 10% m/m and 51% y/y. Soybean oil accounted for more than 40% of the total low-carbon-intensity feedstock pool used for biofuel production.

Soybean oil use has accelerated since the finalization of US biofuel blending mandates for 2026–2027 and updates to the 45Z Clean Fuel Production Credit. By comparison, canola oil use rose just 3% to 330 million lb in July, while used cooking oil consumption fell 11.5% to 610 million lb.

Strong domestic demand continued to support the market in August, with USDA data showing US soybean oil stocks down 13% m/m to 1.70 billion lb. Demand from the biofuel sector may have eased in September, however, as several production plants were offline for planned and unplanned maintenance.

Tags: soybean oil, USA, biofuel