Strong demand for renewable diesel is continuing to drive soybean processing growth across the United States, boosting demand for soy oil used in biofuel production. Industry analysts say expanding renewable fuel mandates and favorable processing margins have encouraged crushers to increase capacity as energy companies seek additional feedstocks for low-carbon diesel fuel. Several new soybean processing facilities are expected to begin operations this year across the Midwest. The increased crush demand has helped support soybean markets despite uncertainty surrounding export competition and global grain supplies. Agricultural economists say domestic demand from biofuel producers is becoming a larger factor in soybean pricing. Biofuel groups and soybean organizations continue to support federal renewable fuel policies, arguing they create new markets for farmers and rural communities. Some livestock groups, however, have raised concerns that higher soybean oil demand could contribute to increased feed costs.
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