Soybean oil used in U.S. biofuel production totaled 1.108 billion pounds in July, according to data from the EIA on Tuesday. Usage was up 6 percent from the previous month but still about 3 percent lower than a year ago. Soybean oil usage continued to recover after plummeting in January following the expiration of the biofuel tax credit. 

Soybean oil used for biodiesel production totaled 593 million pounds, the highest since December 2024. Feedstock usage for renewable diesel totaled 516 million pounds, the highest since October 2024. Soybean oil usage accounted for 37 percent of total feedstock usage in biofuel production, the largest share since September 2024, due to a recent decline in used cooking oil and canola oil consumption. 

Total feedstock usage has been recovering since January. Total feedstocks used in biofuel production totaled 2.991 billion pounds in July, up 2.5 percent from the previous month. Canola oil, corn oil, and used cooking oil usage backed off from June. Tallow consumption hit a record 827 million pounds ahead of U.S. tariffs on Brazilian imports. 

Soybean oil inventories have been recovering after the large dip in domestic usage. Stronger domestic soybean oil usage is expected to support crush demand amid the lack of soybean exports to China. 

U.S. crush data for August will be delayed due to the government shutdown. 

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