WASHINGTON, DC – U.S. soybean oil use for biofuel reached a new monthly record in July, reinforcing renewable fuels as a major source of demand for domestic soybean processing.
USDA’s Economic Research Service says 1.687 billion pounds of soybean oil were used in biofuel production during July 2026. That was 8.4% above the previous monthly record set in June.
USDA continues to forecast 14.8 billion pounds of soybean oil going to biofuel use in 2025/26 and 17.8 billion pounds in 2026/27. The agency also raised soybean oil imports for 2026/27 to 700 million pounds.
Soybean oil supplies have tightened as lower late-season crush and a reduced oil extraction rate cut 2025/26 production. Ending stocks for that marketing year are forecast at 1.66 billion pounds, down 180 million from last month’s estimate.
Strong biofuel demand is increasing the importance of soybean oil to crush economics and domestic soybean demand. USDA’s 2026/27 soybean oil price forecast remains unchanged at 70 cents per pound.
Farm-Level Takeaway: Record soybean oil use in biofuels strengthens a key demand source for domestic soybean processors and growers.