Demand for oils produced from soybeans, canola, and similar crops continues to grow globally. David Widmar of Agricultural Economic Insights says the growth has come almost entirely from increased biodiesel demand, much to the chagrin of pastry chefs.
Widmar adds that new crop acreage has been dominated by oilseeds.
Despite continued demand and amid rising input costs, USDA’s acreage report significantly reduced the number of planted soybean acres for the U.S. this season. The report released Thursday called for 88.3 million when the March Prospective Plantings report had predicted a record 91 million acres.