WHAT IS IT?
Soybean oil is a vegetable oil extracted from whole soybeans. It is the world's most consumed and most traded vegetable oil, with production dominated by the USA, Brazil, and Argentina. Soybean crushing also produces soybean meal — the world's dominant protein animal feed.
PRODUCTION PROCESS
Soybeans → Crushing plant → Soybean Oil (18–20% of weight) + Soybean Meal (80–82% of weight, by weight)
The soybean crush is a joint product — the economics of both oil and meal drive crushing decisions.
KEY USES
Cooking oil: Frying, salad dressings, processed food manufacturing (largest use)
Food manufacturing: Margarine, shortening, mayonnaise
Biodiesel: US RD (Renewable Diesel) and FAME production. Major feedstock under US Renewable Fuel Standard (RFS)
Industrial: Paints, plastics, solvents, inks
VS PALM OIL
Soybean oil is fully liquid at room temperature (more unsaturated), while palm oil is semi-solid. Soybean oil is preferred in Western markets for cooking. Palm oil dominates Asia for frying applications. Both compete on price.
TRADE CORRIDORS
Major exporters: Argentina (world's largest soybean oil exporter), Brazil, USA
Major buyers: India, China, Bangladesh, Southeast Asia, Middle East
Tetra relevance: South American origin dominant. Asia-Pacific is largest import region.
PRICING BASIS
Benchmark: CBOT Soybean Oil Futures (Chicago Board of Trade, US cents/lb). Also the CBOT Soybean Crush spread tracks oil + meal value vs soybeans.
Correlates with palm oil, rapeseed oil, crude oil (biofuel demand).
SPECIFICATIONS (Crude Degummed Soybean Oil)
FFA: max 0.75%
Moisture and volatiles: max 0.2%
Phosphorus: max 200 ppm
Colour: max 60 Yellow/6 Red (Lovibond)
Iodine Value: 125–135 (high unsaturation)