Soybean output hits new high amid biofuel booms

May 15, 2024

By Farms.com

An unprecedented growth in global soybean production is anticipated for the 2024-25 season, with projections showing a rise to 422 million tons. This growth is largely attributed to the increased demand for biofuels in the U.S. and strong import demand from China.

The expansion of biofuels in the U.S. has significantly boosted the domestic need for soybeans, especially as a feedstock for biodiesel production. Soybean oil alone constituted over 40% of the biodiesel feedstock last year, a significant increase that underscores the crop's growing importance in the renewable energy sector.

Despite the recovery in South American soybean production following last year's drought, the full impact of their expected bumper crops will not be felt until next year. This delay gives U.S. growers and exporters a temporary competitive advantage in the global market.

Additionally, while China continues to be a major player in the import market, its efforts to increase domestic soybean production could influence global prices as the year advances.

However, for now, the U.S. market is expected to benefit from high domestic demand and continued strong exports, although these are projected to stay slightly below the recent five-year average.

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