# Biofuels Are Driving up Already High Vegetable Oil Prices

> Agriculture.com reports that biofuel demand, not Russia's invasion of Ukraine, is the main driver of high vegetable oil prices, according to economist Aaron Smith. Biomass-based diesel uses 16% of global vegetable oil and 30% in the US. Announced renewable diesel projects could raise US capacity tenfold by 2024 compared with 2020.

- Date: 2022-07-06 · published 2022-07-06T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/15381-biofuels-are-driving-up-already-high-vegetable-oil-prices
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Rapid renewable diesel capacity growth will keep absorbing vegetable oil supply, supporting soybean oil and palm oil prices.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2020-06-02 | [Strong demand supports prices for vegetable oils at a high level](https://feedsoft.ai/events/6049-strong-demand-supports-prices-for-vegetable-oils-at-a-high-level.md) | +1.8% | +0.1% |
| SBO | 2021-09-13 | [Biofuel Refining Drives Edible Oil Prices \| Food Processing](https://feedsoft.ai/events/45150-biofuel-refining-drives-edible-oil-prices-food-processing.md) | -0.7% | +6.4% |
| SBO | 2026-06-30 | [How Rising Biofuel Demand Impacts Vegetable Oil Markets](https://feedsoft.ai/events/18889-how-rising-biofuel-demand-impacts-vegetable-oil-markets.md) | +1.3% | +1.8% |
| SBO | 2026-06-01 | [US oil refiners finally profit from biofuels due to mandates, high fuel prices](https://feedsoft.ai/events/19351-us-oil-refiners-finally-profit-from-biofuels-due-to-mandates-high-fuel-prices.md) | -2.0% | -6.1% |
| SBO | 2026-08-01 | [U.S. Biofuel Boom: What’s Driving Record Soybean Crush, and Will It Fuel Higher Prices?](https://feedsoft.ai/events/18452-u-s-biofuel-boom-what-s-driving-record-soybean-crush-and-will-it-fuel-higher.md) | +3.6% | +2.3% |
| PALMOIL | 2020-06-02 | [Strong demand supports prices for vegetable oils at a high level](https://feedsoft.ai/events/6049-strong-demand-supports-prices-for-vegetable-oils-at-a-high-level.md) | +3.9% | +5.2% |
| PALMOIL | 2021-09-13 | [Biofuel Refining Drives Edible Oil Prices \| Food Processing](https://feedsoft.ai/events/45150-biofuel-refining-drives-edible-oil-prices-food-processing.md) | +0.8% | +13.3% |
| PALMOIL | 2026-06-30 | [How Rising Biofuel Demand Impacts Vegetable Oil Markets](https://feedsoft.ai/events/18889-how-rising-biofuel-demand-impacts-vegetable-oil-markets.md) | -0.5% | +0.3% |

## Sources

- agriculture.com: https://www.agriculture.com/news/business/biofuels-are-driving-up-already-high-vegetable-oil-prices

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