# Slowing biofuel demand weighs on veg oil markets | Agri-Pulse Communications, Inc.

> USDA economists report uncertainty over renewable diesel and biodiesel demand is weighing on soybean and canola oil markets. USDA cut its 2024-25 biomass-based diesel production estimate to 13.25 billion pounds, and canola oil use for biofuel fell sharply in January.

- Date: 2025-04-16 · published 2025-04-16T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/15126-slowing-biofuel-demand-weighs-on-veg-oil-markets-agri-pulse-communications-inc
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Weaker biofuel feedstock demand reduces vegetable oil use, pressuring soybean oil and canola meal/oil prices, though expected production recovery to meet 2025 obligations limits downside.

## Read by commodity

- SBO: bearish ▼
- SOY: bearish ▼
- CANMEAL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2021-10-12 | [USDA officials increase soybean, corn yield estimates \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/44382-usda-officials-increase-soybean-corn-yield-estimates-agri-pulse-communications.md) | +2.9% | -1.9% |
| SBO | 2026-10-21 | [Soybean Oil Prices Decline Amid Rising US Production and Crushing Slowdown; Indian Demand Bolsters Sunflower Oil Market \| Tridge Insights](https://feedsoft.ai/events/504-soybean-oil-prices-decline-amid-rising-us-production-and-crushing-slowdown.md) | +0.5% | — |
| SBO | 2022-09-12 | [USDA lowers forecast for soybean oil use in biofuel production  \| Biomass Magazine](https://feedsoft.ai/events/39665-usda-lowers-forecast-for-soybean-oil-use-in-biofuel-production-biomass-magazine.md) | +0.3% | -6.6% |
| SBO | 2022-06-14 | [COVID in China and the war in Ukraine remain the main factors influencing the oil markets 14.06.2022 - UkrAgroConsult](https://feedsoft.ai/events/7218-covid-in-china-and-the-war-in-ukraine-remain-the-main-factors-influencing-the.md) | -7.4% | -18.5% |
| SBO | 2024-03-08 | [USDA maintains forecast for soybean oil use in biofuel production, reduces forecast for soybean oil prices \| Biomass Magazine](https://feedsoft.ai/events/31293-usda-maintains-forecast-for-soybean-oil-use-in-biofuel-production-reduces.md) | +3.6% | +6.2% |
| SOY | 2024-08-28 | [Ag trade deficit to grow in FY25, as Chinese market shrinks  \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/14730-ag-trade-deficit-to-grow-in-fy25-as-chinese-market-shrinks-agri-pulse.md) | +4.0% | +8.9% |
| SOY | 2019-11-08 | [Nation's corn crop is shrinking \| 2019-11-08  \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/56017-nation-s-corn-crop-is-shrinking-2019-11-08-agri-pulse-communications-inc.md) | -2.7% | -3.8% |
| SOY | 2021-03-09 | [Corn, soy, wheat ending stocks hold steady for March \| 2021-03-09  \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/48068-corn-soy-wheat-ending-stocks-hold-steady-for-march-2021-03-09-agri-pulse.md) | -1.3% | -1.3% |

## Sources

- agri-pulse.com: https://www.agri-pulse.com/articles/22751-slowing-biofuel-demand-weighs-on-veg-oil-markets

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