The US needs more soybean oil – level 3

06-11-2023 07:00

The US Department of Agriculture predicts that the growing demand for soybean oil in the United States, driven by low carbon fuel requirements, will lead to a continued decline in soybean oil exports in 2024.

This trend is expected to result in the United States losing its position in the global soybean oil export market. Soybean oil exports reached their peak at 1.5 million tons in 2009/2010 but have averaged around 1.0 million tons between 2010 and 2021. In 2022, US soybean oil exports sharply dropped to only 2 million tons, while soybean oil imports exceeded exports, making the United States a net importer of soybean oil for the first time in history.

This shift is attributed to the increased consumption of soybean oil in the United States to support environmentally friendly initiatives. Consequently, countries like China are expected to import fewer oils and more soybeans to produce soybean oil domestically.

Difficult words: trend (a general direction in which something is developing or changing), initiative (an act or strategy to resolve a difficulty or improve a situation), consequently (as a result).

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What impact could the US's shift from a net exporter to a net importer of soybean oil have on other countries?


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