# How soybean oil cost impacts biofuel production and profit margins - Fastmarkets

> Fastmarkets reports that a soybean oil price rally from June to late July pushed US biodiesel and renewable diesel margins negative. Feedstock costs exceed 85% of biodiesel operating costs, and crop failure in Argentina and reduced US acreage added to volatility.

- Date: 2023-10-04 · published 2023-10-04T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/15271-how-soybean-oil-cost-impacts-biofuel-production-and-profit-margins-fastmarkets
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Feedstock cost swings compress biofuel processor margins, which can slow soybean oil demand from the biofuel sector when prices spike.

## Read by commodity

- SBO: neutral

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/soybean-oil-cost-vs-biofuel-production-profit-margins/

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