Soybean Oil Prices Cap by Rising Biodiesel Imports

US soybean oil futures have been stuck in a relatively narrow trading range since mid-July, despite reaching three-year highs for soybean futures in early September and crude oil prices hovering near $100/barrel.

The main factor limiting price gains has been ample supply, driven by strong imports of biodiesel feedstocks. After the EPA set record-high biomass-based diesel mandates for 2026-2027, biofuel producers increased purchases of vegetable oils from abroad.

Imports of finished biodiesel also rose sharply, with around 39.2 thousand tons coming in January-March and nearly doubling to 79.8 thousand tons in April-June.