Corn stocks and use for ethanol seem to get all the attention when the USDA World Agricultural Supply and Demand Estimates are released each month, but soybean oil use for biodiesel attracting some notice lately.
World Agricultural Outlook Board Chairman Gerry Bange says soybean oil use for biodiesel is up 44% over last year at 3.6 billion pounds. “The EPA has indicated its intention to enforce the billion gallon standard and what we’re seeing is a substantial increase in the amount of soybean oil being used to produce methyl ester, which is another way of saying biodiesel,” he told USDA Radio.
This is resulting in a tightening of ending stocks for soybean oil and higher prices. “What it’s leading to is a continuation of a fairly strong price at 55 cents per pound, compared to 53.2 cents per pound in 2010-11,” he said.