# Biofuel Policy Drives Soybean Oil Demand Higher Again - All Ag News

> USDA's Economic Research Service expects U.S. soybean oil demand to rise in 2026/27 as biofuel policy lifts biomass-based diesel output. USDA forecasts soybean oil use for biomass-based diesel at 17.8 billion pounds, up 3.6 billion, and ERS projects Central Illinois soybean oil at 70 cents per pound from 63 cents.

- Date: 2026-05-20 · published 2026-05-20T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/15027-biofuel-policy-drives-soybean-oil-demand-higher-again-all-ag-news
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Higher biodiesel use of soybean oil and expected price gains support crush margins, with more crush also adding soybean meal supply.

## Read by commodity

- SBM: bearish ▼
- SBO: bullish ▲
- SOY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2026-10-05 | [Soybean oil used to produce US biofuels reaches new all-time high in July - Fastmarkets](https://feedsoft.ai/events/14988-soybean-oil-used-to-produce-us-biofuels-reaches-new-all-time-high-in-july.md) | +1.7% | +3.3% |
| SBO | 2022-05-04 | [Strong soybean oil demand elevating price \| DRGNews](https://feedsoft.ai/events/41482-strong-soybean-oil-demand-elevating-price-drgnews.md) | +2.6% | -5.4% |
| SBO | 2025-06-10 | [Biofuel demand powers soybean crush growth - Missouri Soybeans](https://feedsoft.ai/events/15116-biofuel-demand-powers-soybean-crush-growth-missouri-soybeans.md) | +10.9% | +9.8% |
| SBO | 2026-06-03 | [Biofuel Feedstock Demand Up 12% in March as Soybean Oil, Corn Oil Reach Record Highs: EIA - OPIS, A Dow Jones Company](https://feedsoft.ai/events/18890-biofuel-feedstock-demand-up-12-in-march-as-soybean-oil-corn-oil-reach-record.md) | -3.1% | -7.6% |
| SBO | 2026-04-13 | [Crush Demand Drives Soy Complex Higher as USDA Raises Price Outlook - American Soybean Association](https://feedsoft.ai/events/15037-crush-demand-drives-soy-complex-higher-as-usda-raises-price-outlook-american.md) | -3.3% | +4.7% |
| SOY | 2025-06-10 | [Biofuel demand powers soybean crush growth - Missouri Soybeans](https://feedsoft.ai/events/15116-biofuel-demand-powers-soybean-crush-growth-missouri-soybeans.md) | +1.3% | -4.1% |
| SOY | 2020-07-02 | [Analyst says soybeans, not corn, driving grain complex higher - Brownfield Ag News](https://feedsoft.ai/events/52163-analyst-says-soybeans-not-corn-driving-grain-complex-higher-brownfield-ag-news.md) | +0.5% | -0.2% |
| SOY | 2026-04-13 | [Crush Demand Drives Soy Complex Higher as USDA Raises Price Outlook - American Soybean Association](https://feedsoft.ai/events/15037-crush-demand-drives-soy-complex-higher-as-usda-raises-price-outlook-american.md) | -0.7% | +1.6% |

## Sources

- allagnews.com: https://www.allagnews.com/biofuel-policy-drives-soybean-oil-demand-higher-again/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.