# Soybean oil gains ground over canola oil in US biofuel market on tax advantages

> Soybean oil is gaining share over canola oil in US biofuel feedstock use, supported by expanding crushing capacity and more favorable tax incentives. Renewable diesel producers can claim about $0.55 per gallon in 45Z credits for soybean oil versus roughly $0.20-0.22 for canola oil. New crush plants in Ohio and Wisconsin are expected to raise domestic soybean oil supply.

- Date: 2026-11-04 · published 2026-11-04T09:12:35.627Z
- Category: policy · region US · magnitude low
- Page: https://feedsoft.ai/events/79538-soybean-oil-gains-ground-over-canola-oil-in-us-biofuel-market-on-tax-advantages
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A 45Z tax advantage and a lower price than canola oil favor soybean oil in biofuel blending, supporting soybean oil demand and crush margins. Rising domestic supply could weigh on imported canola oil and add pressure on soybean meal prices.

## Read by commodity

- SBO: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2026-03-17 | [Soybean Oil Gains as Trump Plans Farmers, Biofuel Makers Meeting](https://feedsoft.ai/events/20244-soybean-oil-gains-as-trump-plans-farmers-biofuel-makers-meeting.md) | +0.6% | +0.2% |
| SBO | 2025-07-02 | [Canada Know-Risk Market Outlook \| Canola Higher on Weather and Soybean Oil](https://feedsoft.ai/events/23872-canada-know-risk-market-outlook-canola-higher-on-weather-and-soybean-oil.md) | +1.1% | +2.9% |
| SBO | 2026-07-26 | [Biofuel Mandates Test Capacity and Soybean Oil Demand - RFD](https://feedsoft.ai/events/15007-biofuel-mandates-test-capacity-and-soybean-oil-demand-rfd.md) | -7.3% | -3.1% |
| SBO | 2026-10-27 | [Growing US biofuel production intensifies competition for soybean oil](https://feedsoft.ai/events/17179-growing-us-biofuel-production-intensifies-competition-for-soybean-oil.md) | -0.5% | — |
| SBO | 2026-01-19 | [Soybean Oil Surges With US Biofuel Quotas Expected by March - Governors' Biofuels Coalition](https://feedsoft.ai/events/15061-soybean-oil-surges-with-us-biofuel-quotas-expected-by-march-governors-biofuels.md) | +1.7% | +6.7% |

## Sources

- ukragroconsult.com: https://ukragroconsult.com/en/news/soybean-oil-gains-ground-over-canola-oil-in-us-biofuel-market-on-tax-advantages/

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