Record Soybean Crush Fuels Biofuel Boom, Driving Up Prices
The US biofuel industry has reached a milestone as new federal data confirmed record soybean crush and renewable diesel production. The latest figures from the Environmental Protection Agency (EPA) show that biofuel plants are operating at or near full capacity following the implementation of larger Renewable Volume Obligations (RVOs). This is significant because stronger soybean demand is providing fresh support for commodity prices while encouraging new investments across the US agricultural supply chain.
According to Susan Stroud, founder and CEO of NoBull Agriculture, the surge in soybean crush is primarily due to the EPA's 2026 and 2027 Renewable Volume Obligations. Those mandates require biodiesel and renewable diesel producers to maximize production in order to meet federal blending targets.
The policy shift represents a structural increase in domestic demand rather than a temporary market rally, creating a stronger foundation for long-term price support. Biofuel demand is only one factor supporting soybean prices. China has resumed soybean purchases for the upcoming marketing year, while tighter global diesel supplies following Russian export restrictions have strengthened renewable fuel economics and lifted soybean oil values.