Tidbits, Soy Oil, Pakistan & India 4/26/25
- Wright team
- Apr 26
- 6 min read
Q&A: Soybean Oil
Chad asked:
"Is soy oil as bullish as what some folks think it could be?"
No. Three years ago this week, May 2022 soy oil futures settled over 90¢ per pound and traded over 91¢. It was happy days for soybean and corn growers as construction had already been booked and many construction projects were well underway to nearly double the U.S soybean crush capacity by 2026 to produce enough soy oil to meet the biofuel demand that would need every bushel of soybeans and ton of canola North America could grow.
Commercial airlines were willing to pay three times the cost of petro jet fuel for Sustainable Aviation Fuel (SAF) because they saved more than the extra cost of SAF in airport landing and take-off fees because of the greatly reduced SAF carbon footprint. Better yet, Congress had passed and the President had signed into law the 45Z legislation to subsidize biofuels up to as much as $1.75 per gallon as of 1 January 2025.
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