July 27, 2021
Brian Schouvieller, senior vice president, trading and risk management for CHS, talks about increased interest in renewable diesel and how farmers may benefit.
Growing interest in renewable diesel fuel as a way to reduce greenhouse gas emissions spells promise for soybean growers. Renewable diesel, a biomass-based fuel made from feedstocks including refined soybean oil, can power engines without being blended with diesel derived from crude oil – making it a strong fit for refiners under the Renewable Fuel Standard (RFS) program.
The 2021-2022 crop year projections predict that 365 million bushels of soybeans will be consumed by renewable diesel production. That’s a 185% increase from 2020-2021 projections and comprises 8% of total U.S. soybean crop production. With renewable diesel demand predicted to keep soybean stocks tight, the outlook looks promising for strong commodity prices.
Brian Schouvieller, senior vice president, trading and risk management, CHS Global Grain & Processing, says the movement has staying power – and that’s good for U.S. soybean growers.
“We’re seeing significant investment and expansion in the renewable diesel space, which indicates this is a longer-term trend, not just something happening this year or next year. We expect renewable diesel production and demand to continue to grow. For soybean growers, that means more demand for their production and support for better prices.”