# Will Biodiesel Demand Lead to a Paradigm Shift in Soybean Oil? | news.cqg.com

> CME soybean oil futures reached new all-time highs in early June 2021 on biofuel demand linked to federal carbon-reduction goals. USDA's May report projects biofuel use of 12 billion pounds of soybean oil in 2021-22, up from 9.5 billion. ADM, Cargill and others are expanding crushing capacity to meet this demand.

- Date: 2021-06-09 · published 2021-06-09T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/46442-will-biodiesel-demand-lead-to-a-paradigm-shift-in-soybean-oil-news-cqg-com
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Rising biofuel use of soybean oil is a structural demand driver that supports vegetable oil prices. Expanded crush capacity will increase meal output, which may weigh on soybean meal prices over time.

## Read by commodity

- SBO: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2021-11-03 | [Rise of biodiesel leads to jump in cooking oil prices, skyrocketing demand for soybeans \| Here & Now](https://feedsoft.ai/events/44128-rise-of-biodiesel-leads-to-jump-in-cooking-oil-prices-skyrocketing-demand-for.md) | -4.1% | -8.1% |
| SBO | 2022-03-25 | [Soybean oil demand will expand as renewable diesel emerges as ideal biofuel - Indiana Corn and Soy](https://feedsoft.ai/events/15407-soybean-oil-demand-will-expand-as-renewable-diesel-emerges-as-ideal-biofuel.md) | -2.1% | +274.5% |
| SBO | 2019-03-06 | [768 million pounds of soybean oil went to biodiesel in December - McKeany-Flavell](https://feedsoft.ai/events/60179-768-million-pounds-of-soybean-oil-went-to-biodiesel-in-december-mckeany-flavell.md) | +0.2% | -2.6% |
| SBO | 2021-03-15 | [Biodiesel Boosts Demand for Iowa Soybeans \| Iowa Soybean](https://feedsoft.ai/events/48002-biodiesel-boosts-demand-for-iowa-soybeans-iowa-soybean.md) | +0.0% | -0.5% |
| SBO | 2022-11-10 | [CHS sees 'bullish' demand in soybean oil, citing renewable diesel](https://feedsoft.ai/events/38751-chs-sees-bullish-demand-in-soybean-oil-citing-renewable-diesel.md) | -1.8% | -13.0% |

## Sources

- news.cqg.com: https://news.cqg.com/blogs/commentary/2021/06/will-biodiesel-demand-lead-paradigm-shift-soybean-oil

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