Soybean Oil Carries More of Soy’s Value By Scott Gerlt, Ph.D. Chief Economist American Soybean Association
S
oybeans have the distinction of essentially consisting of two products in one crop. While
20 December 2023
soybean oil and soybean meal are produced in a fairly fixed ratio, the demand for each is largely independent. While called an oilseed, soybeans are largely produced to provide a high-protein feed ingredient.
Yet demand growth for soybean oil in the U.S. is spurring increased demand for soybeans. The historical relationships between oil and meal prices are undergoing fundamental changes.
Soybean price increases that started in late 2020 have largely been driven by a higher soybean oil price (Figure 1). The initial run-up in soybean oil prices from 2020 to 2022 was due to many factors in the veg-
