USDA Keeps its Projection For Using Soybean Oil to Produce Biofuel
- 11-Nov-2022 6:15 PM
- Journalist: Yage Kwon
Lowa (US): According to the most recent Agricultural Supply and Demand Assessment report, the US Department of Agriculture reaffirmed its projection for Soybean Oil use in biofuel production for the years 2022–2023. The anticipated amount of Soybean Oil used as biofuel in 2021-2022 has increased.
The USA's forecasts for soybean involves increasing production, destruction, and ending stocks for 2022-2023. Production of soybeans is anticipated to increase by more than 30 million bushels to 4.35 billion due to improved yields. The higher yields in Iowa and Missouri are largely to blame for the change in production.
Due to a more accurate prediction of soybean meal's disappearance from the domestic market, soybean crushing increased by 11 million bushels. Ending soybean inventories grew to 200-210 million bushels while exports were steady. The seasonal average soybean price in the United States for 2022-2023 is anticipated to remain at $14.9 per bushel from the previous month. Similarly, the cost of Soybean Oil remained constant at 69 percent per pound. Soybean meal will cost an additional $10 per tonne or $400 per tonne.
The USDA currently projects that 12 billion pounds of Soybean Oil will be used in biofuel production in 2022-2023. Compared to last month's estimate of 10.2 billion pounds, the amount of Soybean Oil to be used in the manufacturing of biofuels in 2021-2022 has climbed to 10.35 billion pounds. 8.92 billion pounds of Soybean Oil were used to produce biofuels in 2020-21.
Recently, Argentina production decreased, causing a 500,000-tonne decline in global Soybean Oil production to 390.5 million tonnes. According to national estimations, the collection area in Argentina has been reduced. Forecasted global oilseed ending stocks will be 121.9 million tonnes, an increase of 1.4 million tonnes. Soybean stocks, whose holdings have grown due to revised imports in 2021-2022, account for the majority of the shift.
As per the ChemAnalyst database, it is anticipated that the price of Soybean Oil will increase in the forthcoming period as demand may rise from the domestic end-user industries, including households.
