Soybean Oil Market Rebounds on USDA Acreage Cut: Bullish Signals for 2025 Harvest

Soybean Oil Market Rebounds on USDA Acreage Cut: Bullish Signals for 2025 Harvest

Phoebe Cary 08-Sep-2025

US soybean oil prices surged following a surprise acreage cut of soybean in August 2025 WASDE report, reversing earlier losses and signaling a bullish outlook for the remainder of the year. Irrespective of record yield forecasts, the reduction in plant areas has tightened the supply expectations, prompting upward revisions in the domestic usage and export volumes of soybean oil and in return soybean oil. Furthermore, soymeal prices rallied in physical market strength, while soybean oil future remained floating among the biofuel policy stagnation and external commodity pressures.

Key Highlights:

  • Acreage Shock: USDA slashed soybean acreage by x.x million acres, the lowest since xxxx.
  • Price Rally: November futures jumped xx post-report, driven by reduced supply expectations.
  • Global Impact: U.S. cuts tighten global stocks despite stable Brazil output.
  • Soybean Oil: Prices flat amid competition from Canadian canola and unchanged biofuel demand.

 

Domestic Market Dynamics:

The August WASDE report delivered a jolt to soybean markets, with USDA revising U.S. soybean acreage down considerably fewer than previously estimated and the smallest since xxxx. This unexpected dip trumped record yield expectations of almost almost xx bushels an acre, a record high in U.S. history if materialized.

The combined impact was to reduce the xxxx crop of soybeans to lower it from the fifth largest ever US crop to the sixth largest. Market expectations had been calling for a nearly x.x...

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