(ND Ag Connection) – The USDA increased its forecast for 2023-’24 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released Jan. 12. The price of soybean oil was revised down.

U.S. soybean production for 2023-’24 is estimated at 4.2 billion bushels, up 35 million from last month led by increases in Illinois, Missouri and North Dakota. Harvested area is estimated at 82.4 million acres, down 400,000 from the previous report. Yield is estimated at 50.6 bushels per acre, up 0.7 bushels.

With slightly lower beginning stocks, soybean supplies are up 31 million bushels from last month. The soybean export and crush forecasts are unchanged. With higher supplies and slightly lower residual, ending stocks are projected at 280 million bushels, up 35 million. According to the USDA, the soybean oil balance sheet adjustments include increased imports and biofuel use, and lower exports and food, feed and other industrial use.

The USDA currently predicts 13 billion pounds of soybean oil will go to biofuel production for 2023-24, up from the December forecast of 12.8 billion pounds. An estimated 12.491 billion pounds of soybean oil went to biofuel production for 2022-’23, up from 10.379 billion pounds for 2021-’22.

The U.S. season-average soybean price for 2023-’24 is projected at $12.75 per bushel, down 15 cents from last month. The soybean meal price is projected at $380 per short ton, down $10. The soybean oil price is forecast at 54 cents per pound, down 3 cents.