Examining Record Soybean Oil Prices in 2021-22

Soybean oil is the most widely used vegetable oil in the United States, accounting for more than 50 percent of all domestic vegetable oil use. It can be found in food products such as baked goods, snacks, cooking oils, mayonnaise, salad dressings, and processed frozen foods. It also is used to produce inedible products such as caulk, plastic, resin, and, increasingly, biofuels—agriculturally based transportation fuels. Soybean oil’s popularity in large part can be attributed to its status as the most widely grown U.S. oil crop. Its use as a feedstock in the production of biofuels has sparked increased domestic demand for a product that can help transportation fuel producers meet mandated renewable fuel obligations.