Renewable-Fuel Push Drives Soyoil Prices to Record High
A surge of interest in renewable energy is placing new stress on limited vegetable-oil supplies
Kirk Maltais, The Wall Street Journal
via Live Mint - 06 Jun 2021
Prices for soybean oil shot to an all-time high last week, powered by growing demand from the biofuels sector.
Soybean-oil futures on the Chicago Board of Trade have soared almost 70% this year, closing at nearly 72 cents per pound on Friday. That topped the previous high hit in 2008. The climb makes soybean oil one of the year’s best-performing assets among a basket tracked by The Wall Street Journal, along with other commodities like lumber, corn and hogs...
... “Biofuel, particularly renewable diesel, is a key driver of the demand picture on the vegetable-oil side as we look forward," said Greg Morris, president of Archer Daniels Midland Co.’s agricultural services and oilseeds business unit.
The U.S. Agriculture Department expects the biofuels sector to consume 12 billion pounds of soybean oil in the 2021-22 marketing year—up from an estimated 9.5 billion pounds in 2020-21, according to its monthly supply-and-demand report published in May.
Producers are racing to keep up...