U.S. soybean crushings totaled 227.9 million bushels in January, up 72 percent year-over-year, according to the USDA’s Fats and Oils report released on Monday. Year-to-date crushings for the 2025/26 marketing year reached 1.120 billion bushels, up 7.4 percent from the previous year and reaching 43.6 percent of the USDA’s target.

Soybean processing continued to operate at a record this season amid strong soybean crush demand and lower U.S. exports. Oilseed processors need to crush an average of 207.1 million bushels through the rest of the season to meet the current target of 2.57 billion bushels.

Soybean meal inventories in January were 5.1 percent lower than a year ago at 404,800 tons. Record soybean meal exports have kept inventories from swelling despite record production.

Soybean oil inventories at the end of January totaled 2.433 billion pounds, up 34 percent year-over-year. Volumes for the month were also the highest since 2022.

Declining soybean oil demand for biomass diesel production contributed to the rise in inventories over the past year. Soy oil used for biodiesel and renewable diesel production totaled nearly 11 billion pounds in 2025, down 17 percent year-over-year, according to the latest data from the Energy Information Administration.

Meanwhile, beef tallow usage rose 26 percent from the previous year to a record 9 billion pounds. Beef tallow has been the most competitively priced feedstock for biomass diesel production since the expiration of the 45Z tax credit at the end of 2024. Canola oil and used cooking oil usage also experienced a sizable drop. Total feedstock usage declined by 13 percent year-over-year, as biofuel producers in general were cautious ahead of finalized renewable volume obligations for 2026.

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