# The Biodiesel Profitability Squeeze that Wasn’t - farmdoc daily

> Scott Irwin's farmdoc analysis argues earlier estimates overstated biodiesel plant losses. The original model put average Iowa FAME profit at -$0.27 per gallon over 2021-2023 versus +$0.07 over 2007-2020, and the revised view suggests producers were behaving rationally.

- Date: 2023-11-14 · published 2023-11-14T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/15265-the-biodiesel-profitability-squeeze-that-wasn-t-farmdoc-daily
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Revised profitability estimates indicate FAME biodiesel plants are less squeezed by renewable diesel competition than thought. That suggests steadier soybean oil demand from the biofuel sector.

## Read by commodity

- SBO: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2023-11-22 | [Biodiesel Producers Weathering the Renewable Diesel Surge](https://feedsoft.ai/events/15264-biodiesel-producers-weathering-the-renewable-diesel-surge.md) | -1.2% | -4.4% |
| SBO | 2025-01-03 | [US biofuel producers ramped up in Oct as profitability improved, data shows](https://feedsoft.ai/events/15154-us-biofuel-producers-ramped-up-in-oct-as-profitability-improved-data-shows.md) | +0.7% | +10.7% |
| SBO | 2021-02-27 | [The US produced more than 1.8 billion gallons of biodiesel in 2020](https://feedsoft.ai/events/48732-the-us-produced-more-than-1-8-billion-gallons-of-biodiesel-in-2020.md) | +1.1% | +12.9% |
| SBO | 2026-05-14 | [New-Crop Soybean Oil Export Projection Suggests Greater Price Volatility - farmdoc daily](https://feedsoft.ai/events/15029-new-crop-soybean-oil-export-projection-suggests-greater-price-volatility.md) | +0.5% | -2.1% |
| SBO | 2018-06-20 | [Rabobank: Bye Bye Palm Biodiesel? - The Insiders Stories](https://feedsoft.ai/events/64414-rabobank-bye-bye-palm-biodiesel-the-insiders-stories.md) | +0.3% | -2.7% |

## Sources

- farmdocdaily.illinois.edu: https://farmdocdaily.illinois.edu/2023/11/the-biodiesel-profitability-squeeze-that-wasnt.html

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