U.S. refined soybean oil moved higher through January on persistent renewable-diesel demand and export activity, despite comfortable 2025 soybean supplies and processing runs capping gains. The market remained tight on the margin as demand from biofuels and exports outpaced modest inventory builds, keeping bids firm into month-end. Early USDA revisions and renewable-diesel intake helped bolster sentiment, while crushers sustained runs supported by favorable crush margins. Seasonal harvest ease reduced procurement frictions, yet refiners redirected volumes to Gulf Coast renewable-diesel plants, limiting stock builds. Improved river barge conditions eased logistics versus late 2025, supporting orderly flows to export terminals and underpinning bids. Sector dynamics show the energy/renewables engine driving value, with Gulf-area feedstock availability supporting continued plant throughput. Demand from export inquiries and food-channel usage provided a reliable floor. Near term, the market is seen trading in a narrow band, with renewables-driven tightness balancing agricultural selling and seasonal marketing. The outlook remains constructive but subject to supply discipline and biofuel demand.
