United States’ soymeal exports will breach the 13.9 million-ton mark in the 2023-24 season, afloat burgeoning biofuel demand.

In an October 23, 2023 report, the U.S. Department of Agriculture (USDA) links rising biofuel appetite to the rebound. Hence, the U.S. soymeal exports will surpass the 13.2 million tons they made in the 2022-23 market year.

The report further attributes the record high production of soymeal in the United States to uptick local orders for green diesel. Domestic industrial appetite for biomass-based fuel has seen the crushing of the legume go to surplus levels.

The surplus has attracted international buyers and in the 2022-23 soy year, the U.S. raked in $7b from soymeal exports.

Key importers of U.S.’ soymeal include Europe and Vietnam, whose purchases have surged after drought incapacitated the top exporter, Argentina. Other international markets are neighboring Mexico and the Philippines.

Price Pressure Still on Soybeans

With the ongoing harvest of soybeans in the country, USDA forecasts stability in soymeal exports amid falling prices.

By October 23 the American soy- and corn-belts had harvested 76% and 59% of the two crops respectively.

Due to the fast reaping time, the soy crop is still under price pressure which has held since September, 2023. With the market inundated with sufficient supplies, the prices remain low.

In week 1 of October, soybean futures at the Chicago boarse lost 0.5% price gains to trade at $12.64 a bushel ($.046 a kg).

Corn, which is also a candidate for producing ethanol which can fuel aircraft, also lost and has continued to slide.

Soymeal and Green Diesel

Soymeal and oil production take place at the same time during the crushing of soybeans. In the U.S., 30% of soybean oil goes on to make biodiesel, also known as green diesel.

Estimates put soy-derived feedstock in the U.S. at three-quarters of all biofuel production, with cornmeal coming next.

Each soybean crushing produces 80% of soymeal and 20% vegetable oil. Plants process the vegetable oil further to make green diesel.