USDA predicts soybean oil use in biofuel production will increase in 2025-‘26
February 28, 2025
BY Erin Voegele
The USDA on Feb. 27 released its Grains and Oilseed Outlook for 2025, predicting a modest increase for 2025-’26 soybean production. Soybean oil prices are projected down slightly, and soybean oil use for biofuels Is expected to increase.
U.S. soybean suppliers are expected to increase less than 1% in 2025-’26 on higher beginning stocks and a relatively small increase to production. Assuming normal weather conditions this year, the USDA is forecasting soybean yields at 52.5 bushels per acre, 1.8 bushels per acre higher than last year. Higher yields are expected to be mostly offset by lower planted acreage, which is expected at 84 million acres, down 3.1 million acres from 2024.
Soybean crush in the U.S. is expected to increase 65 million bushels to 2.48 billion. That increase is expected to be supported by demand or soybean oil for biofuel and exports. The use of soybean oil for biofuel is expected to reach 14 billion pounds, up 400 million when compared to the previous marketing year.
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The price for soybean oil is expected to fall to 42 cents per pound for 2025-’26, down 1 cent per gallon from the previous year.
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