Updated FI monthly soybean oil PDF attached / other graphs and tables below


US biodiesel update – bullish soybean oil. 


A decline in alternative feedstocks use, such as restaurant grease, and lower imports of vegetable for industrial use, all for biodiesel production, had a profound impact on US soybean oil for biodiesel production, in large part to changes in consumption amid Covid-19.  US production of biodiesel was 147 million gallons in May 2020, 4 million gallons higher than production in April 2020, but below our expectations. There were a total of 1,109 million pounds of feedstocks used to produce biodiesel in May 2020, up from 1.070 billion during April and down from 1.178 billion for May 2019. All feedstock use came in below our expectations.  Soybean oil, on the other hand, came in well above our expectations, during May 2020 with 778 million pounds consumed, above 672 million during April 2020 and above 659 million for May 2019.  This prompted us to increase our soybean oil for biodiesel use by 100 million pounds to 7.650 billion pounds, 250 million pounds above USDA July of 7.400 billion.  Look for USDA to raise their estimate for soybean oil for biodiesel use by 200 million pounds on August 12, and lower food by the same amount.  We increased our domestic use for soybean oil by 60 million pounds to 22.300 billion, above USDA’s 21.950 billion estimate.  Our 2019-20 soybean oil carryout is now 1.908 billion, below USDA July of 2.020 billion, a 112-million-pound difference. 


May use of soybean oil for biodiesel represented 70.2 percent of total feedstock, highest percentage since December 2011.  The five-year average for soybean oil as a percent of total feedstock use is 53 percent. 




A screenshot of a cell phone  Description automatically generated




Terry Reilly

Senior Commodity Analyst – Grain and Oilseeds

Futures International │190 S LaSalle St., Suite 410│Chicago, IL  60603

W: 312.604.1366


AIM: fi_treilly

ICE IM:  treilly1

Skype: fi.treilly


Description: Description: Description: Description: FImail


Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons.  All of these investment products are leveraged, and you can lose more than your initial deposit.  Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction.  The information provided here should not be relied upon as a substitute for independent research before making your investment decisions.  Futures International, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs.  All investors should obtain advice based on their unique situation before making any investment decision.  The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative.  The sources for the information and any opinions in this communication are believed to be reliable, but Futures International, LLC does not warrant or guarantee the accuracy of such information or opinions.  Futures International, LLC and its principals and employees may take positions different from any positions described in this communication.  Past results are not necessarily indicative of future results.