CHICAGO — U.S. refined soybean oil prices climbed steadily through January 2026, gaining 3.73% over the month as demand from renewable diesel producers and exporters outstripped supply growth. Tight margins persisted despite comfortable soybean stockpiles and strong processing runs carried over from 2025, according to market analysts.

Biofuel mandates kept renewable diesel plants hungry for feedstock. Refiners shifted volumes toward Gulf Coast facilities, curbing inventory buildup at traditional sites. Crushers maintained high runs, backed by profitable margins that encouraged steady soybean processing.

Export inquiries stayed brisk, providing a solid demand floor alongside food industry usage. Improved river barge conditions on key waterways smoothed logistics compared to late 2025 bottlenecks. This allowed reliable shipments to Gulf terminals, bolstering buyer bids through month-end.

Early revisions from the U.S. Department of Agriculture added to positive sentiment. The agency noted higher renewable diesel intake figures, which aligned with sector reports of sustained plant throughput. Seasonal easing in soybean harvests from the prior year reduced procurement pressures on processors.

Market participants described a balanced tug-of-war. Renewables and exports drove value, while agricultural selling and seasonal patterns capped upside. Gulf-area feedstock availability proved critical, enabling facilities to run at capacity without major disruptions.

Looking ahead, traders expect soybean oil to trade within a narrow range. Renewables-driven tightness should offset incoming agricultural supplies and routine seasonal marketing. The constructive tone hinges on disciplined supply management and unwavering biofuel needs, analysts said.

January’s price action highlights the energy sector’s growing influence on oilseed markets. Renewable diesel production, now a major consumer, redirected flows that might otherwise flood storage. Export demand, particularly from Asia and Europe, held firm amid global feed oil competition.

Crushers reported no major halts, with margins holding above breakeven levels. River traffic normalized after December’s weather delays, cutting transport costs and supporting exporter confidence. Food processors absorbed steady volumes, though biofuels claimed the largest share.

Inventory data showed only modest gains, reinforcing the tight balance. Refiners prioritized high-value outlets over stockpiling. This dynamic kept spot bids elevated, even as futures reflected cautious optimism.