Grains, Farm Supply & Biofuels: Renewable Diesel Will Shift More Acres to Soybeans

The renewable diesel boom and the smaller U.S. soybean harvest of 2023 will drive an expansion of soybean acreage in 2024, reducing acres available for other crops. The biofuel sector at large carries the momentum of historically large profit margins into the new year. Both ethanol producers and soybean crushers are benefiting from rising demand for biofuels. The grain and oilseed price outlook hinges largely on the value of the U.S. dollar, conditions of wheat in Russia and harvests of corn and soybeans in South America.

EDITOR’S TAKE:

We look for stable prices for most crops during the remainder of 2023 and into 2024. Yields in South America will play a big role in what happens as they harvest crops early in the new year. A declining U.S. dollar will benefit exports of U.S. produced crops. And, as the article points out, growing demand for biofuels will also push prices in the right direction. In fact, government support for aviation biofuels is expected to play a significant role with price discovery in 2024 and beyond. Farmers/ranchers will have income from 2023 crops, and 2024 should only boost their ability even further to purchase trucks!