Skip Navigation

the Environmental and Energy Resources Library

Home Browse Resources Get Recommendations Forums About Help Advanced Search

Soybean Co‐product Economics: Why Livestock Producers Should Use Biodiesel to Haul their Soybean Meal

Soybean oil and meal prices have reached historic levels this marketing year with soybean oil rising
above 50 cents per pound and soybean meal topping $325 per short ton. Since the price of soybeans is
directly driven by the value of these two co‐products, we have seen similar increases in soybean prices1.
While soybean producers are enjoying these higher soybean prices, the oil and meal users are not. There have been statements made in the press and other venues (usually by those
sympathetic to meal users) that the increased soybean oil demand for biodiesel production has not only driven up oil prices, but it has also
caused meal prices to skyrocket. This is not true since increases in soybean oil demand will actually cause meal prices to decrease with all
other things held constant.

Cumulative Rating: (not yet rated)
Date Of Record Release 2009-10-15 12:50:45
Description Soybean oil and meal prices have reached historic levels this marketing year with soybean oil rising
above 50 cents per pound and soybean meal topping $325 per short ton. Since the price of soybeans is
directly driven by the value of these two co‐products, we have seen similar increases in soybean prices1.
While soybean producers are enjoying these higher soybean prices, the oil and meal users are not. There have been statements made in the press and other venues (usually by those
sympathetic to meal users) that the increased soybean oil demand for biodiesel production has not only driven up oil prices, but it has also
caused meal prices to skyrocket. This is not true since increases in soybean oil demand will actually cause meal prices to decrease with all
other things held constant.
Classification
Resource Type
Format
Subject
Source Biodiesel Sustainability
Keyword Biodiesel fuel, Biofuels, Farming
Selector Offley
Date Of Record Creation 2009-10-15 12:45:04
Education Level
Date Last Modified 2010-05-13 16:53:41
Language English
Date Record Checked: 2009-10-15 00:00:00 (W3C-DTF)

Log In:





Mission
EERL's mission is to be the best possible online collection of environmental and energy sustainability resources for community college educators and for their students. The resources are also available for practitioners and the public.

EERL & ATEEC
EERL is a product of a community college-based National Science Foundation Center, the Advanced Technology Environmental and Energy Center (ATEEC), and its partners.

Contact ATEEC 563.441.4087 or by email ateec@eicc.edu