Mumbai, May 06 (Commoditiescontrol): Soybean oil's share in the production of biodiesel and renewable diesel (HVO) has dropped dramatically, hitting a low of only 30% in February compared to 45% the previous year. This is a major decline attributed to rising competition from alternative feedstocks. As a result, U.S. soybean oil prices have experienced a significant decline in recent weeks.
According to the latest U.S. Energy Information Administration (EIA) data, soybean oil use in biofuels hit a multi-year low of 403,000 tons in February. In contrast, the use of tallow/greases more than tripled year-on-year to 364,000 tons, and used cooking oil (UCO) increased by 36% to 288,000 tons. While experiencing a short-term dip, canola oil usage remains up sharply year-on-year, reaching 134,000 tons.
The abundance of used cooking oil (UCO) has pressured prices in the U.S. market, leading to decreased U.S. imports and Chinese exports. Some UCO is even being re-exported from the U.S. However, a record surge of UCO imports in March has temporarily shifted sentiment in the U.S. vegetable oil market.
The influx of UCO, along with increased use of tallow and canola oil, has led to a 19% drop in U.S. soybean oil prices over the last four weeks. Despite this, other indicators remain strong. Increased biodiesel output and record supplies of UCO have kept overall U.S. consumption of oils and fats steady.
(By Commoditiescontrol Bureau; +91-9820130172)
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