CATEGORY

Soybean Oil

Soybean oil is the second most consumed vegetable oil in the world driven by the US and Asian demand. China is the major soybean oil consuming country with its main end use application being for food products.

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Category Alerts


CATEGORY ALERTS

Canada's soybean crop is estimated by USDA to decline.

March 30, 2023
alert level: Medium
CATEGORY ALERTS

India has extended to allow Palm Oil imports at lower duty till March 2024

January 02, 2023
alert level: Medium
CATEGORY ALERTS

Cargill to acquire Owensboro grain, a soybean processor and refiner.

November 30, 2022
alert level: High

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Price Trend
1380.61
Feb-24
USD/MT
History Forecast

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Soybean Oil Industry Benchmarks


Savings Achieved

(in %)

The average annual savings achieved in Soybean Oil category is 4.60%

Payment Terms

(in days)

The industry average payment terms in Soybean Oil category for the current quarter is 75.0 days

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    Soybean Oil market frequently asked questions


    As per Beroe's soybean outlook 2020 report, China is the largest producer and consumer of soybean oil, consuming around 99% of its production. Brazil and the US are also the major consumers according to Beroe's global soybean market report. India is the largest importer of soybean.

    Beroe's soybean international market reveals the current trends to be: steady growth in the supply, low production in spite of large production areas due to the La Nina conditions, and a rise in demand due to the deficiency in rapeseed oils.

    The global soybean market saw a great increase in demand due to the recovery in biodiesel demand. The increase in population and rise in soybean production has also been driving factors for more soybean consumption in China. The major use cases driving the demand for soybean oil are food application and industrial use.

    Soybean Oil market report transcript


    Global Market Outlook on Soybean Oil

    • US, Brazil, and Argentina are the major soybean oil producing countries, where China leads in consumption

    • Demand for soybean oil is increasing steadily, at a global level, in a wide range of sectors with the global tight supply of vegetable oils

    Soybean Oil Value Chain

    • Soybean oil value chain and prices are driven using by-product, raw materials supply, and crushing economies. approx. 82 percent of the soybean produced globally is used for the purpose of crushing, out of which 18 percent of oil and 82 percent meal are obtained

    • Despite the low share as a by-product, soybean oil prices play a major role in the pricing economies of soybean value chain, due to its utility in end-use demand

    Global Soybean Oil Supply–Demand Analysis

    • Major soybean oil-producing regions are China, Argentina, and the US, which account for about 62 percent of the global soybean oil production

    • Soybean oil demand witnessed a consecutive increase for the last three years, due to increased soybean supply and tightened supply in the other vegetable oil market, mainly the rapeseed oil market

    Market Outlook:

    • Global production and consumption of soybean oil from 2017–2018 to 2022–2023 grew at a CAGR of 9 percent and 9.3 percent, respectively

    • Global production and consumption are expected to grow at 3.8 percent and 1.7 percent, respectively, for 2022–2023 compared to the previous year

    • The accelerated consumption growth of soybean oil in China and the US will drive the production increase

    Soybean Oil Global Demand by Application (2022/2023)

    • The global soybean oil demand witnessed a steady increase in the recent decade, due to an increasing share of demand from the food industry.

    • Soybean crushing in Argentina and Brazil is now forecast to increase. US imports of soy oil are set to increase to alleviate the domestic tightness and exports are declining.

    • China is the largest producer and consumer of soybean oil. China consumes almost approx. 99 percent of the domestic production.

    Soybean Oil Consumption by Country (2022/2023)

    • Lower than-expected Brazilian biodiesel production will now raise soya oil supplies for the export market and reduces the import requirements of oil and fats.

    • The EU NGOs are targeting the use of soy oil in the biodiesel industry just as that palm oil. Under the revised renewable energy directive, the European Parliament has proposed a ban on soy oil for biofuels just as palm oil.

    Global Soybean Oil Market Trade Dynamics

    • Ukraine soybean export is on an uptrend since the invasion by Russia. Ukraine exported 1.2 million tons of soybeans since the invasion by Russia. Soybean accounts for 7.05 percent and soybean oil accounts for around 0.28 of total exports from Ukraine

    • Argentina and Brazil are the largest soybean oil exporting countries, accounting for about 61 percent of the global exports, while India is the largest soybean oil importing country

    • Rising dependency of consumers on soy oil, due to the decline in palm oil and rapeseed oil production, is likely to boost trade in 2023

    • India is the largest importing nation of soybean oil, and all of it is used in food applications. The decline in India’s palm oil imports is often due to increasing soybean oil import

    Innovations/Trends : Soybean Oil

    Roundup Ready 2 Xtend Technology: By Monsanto

    • After a decade of development, the new and elite germplasm in Roundup Ready 2 Xtend soybeans can provide growers with outstanding performance in their efforts to produce the best crop possible

    • Roundup Ready 2 Xtend soybeans are built on the same high-yielding germplasm as Genuity Roundup Ready

    • 2 Yield soybeans, which continue to deliver a greater than 4-Bu-per-acre advantage compared with the original Roundup Ready soybeans

    • Although Roundup Ready 2 Xtend soybeans tolerate both glyphosate and dicamba herbicides, the use of dicamba herbicide over the top of Roundup Ready 2 Xtend soybeans remains in late stage of Environmental Protection Agency (EPA) review, and it is not currently approved by the EPA

    High Oleic Oils

    • For years, companies have tried to phase out margarine from the food processing industry through numerous innovations. One such innovation is the high oleic oils

    • High oleic oils are rich in mono-saturated fat content and do not contain trans fats, unlike the partially hydrogenated fats used in the food processing industry

    • Oils with high oleic contents are heat stable, and thus, can be reused

    • In case of soybean oil, which is highly rancid in nature, compared to the other vegetable oils, this is likely to be a breakthrough, if the researchers successfully manage to increase the shelf life of the product

    • Many US-based fast food joints have shifted in using high oleic oils

    Procurement Parameters : Soybean Oil

    The following parameters should be considered while sourcing soybean oil:

    Best Sourcing Months

    • Soybean oil tracks soybean prices. The soybean oil prices are expected to be lower during October, November, and December

    • The soybean oil prices are expected to witness lower levels during these months, due to arrival of new soybean crops

    Best Sourcing Regions

    • The best sourcing regions for soybean oil are the U.S., Brazil, and Argentina

    • China is the largest producer of soybean oil. They export <1 percent of their production, due to the strong presence of the domestic crushing industry

    • The prices of soybean oil are the lowest in Argentina (this is due to currency devaluation), and there are a lot of political uncertainties in the country. This may support the soybean oil sourcing, based on the proximity to the destination.

    Contract Structures

    • Soybean oil prices and contract structures are fixed by the U.S. suppliers using CBOT future and adding the basis & freight costs. The basis is the difference between cash and future prices. Profit margin depends on time of buying and selling

    Regional Market Snapshot

    This section analyses the different geographical regions and gives detailed information about the:

    • Soybean Oil Market Size
    • Soybean Oil Production Details
    • Import / Export Share
    • Soybean Oil Market Forecast
    • Soybean Oil Market Trends 
    • Soybean Oil Prices And Price Drivers
    • Supply / Demand And Other Trade Dynamics

    Why You Should Buy This Report

    The soybean oil market analysis provides information on key industry trends, drivers and constraints, the regional market outlook of APAC, Europe and North America, and Porter’s five forces analysis of the global soybean oil market in each region. It provides insight into the supply trends and presents a SWOT analysis of major suppliers. Further, the soybean oil market report breaks down the cost structure for different sub-categories and compares the best sourcing, pricing and contract models.

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