US soybean oil stocks fall to lowest level in nearly 12 years

US soybean oil inventories continue to decline amid strong demand from the biofuel industry and a slowdown in soybean crushing. According to the US Census Bureau, stocks stood at just 660 thsd tons at the end of September 2026, down 17% from the same period a year earlier. This marked the lowest level since December 2014, reflecting a significant reduction in available soybean oil supplies in the US market.

One of the main drivers behind the decline in stocks has been strong soybean oil consumption for biodiesel and renewable diesel production. Rising domestic demand has reduced inventory coverage to just 17 days of consumption at the end of September, compared with more than 30 days at the beginning of 2026. This trend indicates intensifying competition for feedstock between biofuel producers and other vegetable oil consumers.

However, analysts suggest that actual soybean oil inventories in the US may be higher than official figures indicate. This is linked to the rapid expansion of biodiesel and renewable diesel production capacity, some of which operates outside traditional agricultural supply and reporting channels. Additional volumes of soybean oil may be held at facilities integrated with processing plants and at farmer-owned cooperatives, making it more difficult to assess the actual supply-demand balance.

A slowdown in soybean crushing due to harvest delays has added further pressure to the market. In September, US processors crushed 5.41 mln tons of soybeans, the lowest monthly volume in 13 months. This also marked the first year-on-year decline in soybean crushing since February 2025. Limited arrivals of newly harvested soybeans at processing facilities constrained soybean oil production amid consistently strong domestic demand.

Meanwhile, US processors have increased canola crushing despite the slowdown in soybean processing. In September, canola crush reached a record 217 thsd tons, compared with 209 thsd tons a year earlier. Total US canola crushing during June–September 2026 reached a record 815 thsd tons for the period, up from 730 thsd tons a year earlier. The increase reflects growing use of alternative oilseed feedstocks, particularly to meet the needs of the US biofuel industry.

Tags: soybean oil, USA, stocks