Future of renewable diesel industry could fuel the expansion on soybean markets

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Future of renewable diesel industry could fuel the expansion on soybean markets

A grain market analyst says growth in the renewable diesel industry will create new and competitive markets for U.S. soybean farmers.

Brian Burke with John Stewart and Associates tells Brownfield investments in crushing facilities and renewable diesel plants signal a bright future. “It is very convincing to me that we’re going to see this evolution of increased crush, increased vegetable use for renewable diesel to lower green house gas emissions in that diesel fuel supply.  It’s a real movement and it’s going to happen.”

Burke says renewable diesel demand is supporting prices for vegetable oils, restaurant greases and feed tallows and fats. “When you look at all of those multiple feed stocks that are going into these renewable diesel refineries and the build out that’s going to happen over the next 3 to 4 years with more crush capacity more plants being built in the United States to supply that soybean oil to the renewable diesel refiners is an exciting story.”

He says the U.S. is projected to add 400 to 450 million bushels of soybean crushing capacity over the next four years.

Brownfield interviewed Burke at the AgMarket.Net meeting in Kansas City.

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