By Patrick Thomas
Soybean oil is trendy again.
Agriculture commodity traders and processors such as ADM and Bunge are reaping the benefits of strong demand for biofuels derived from crops such as soybeans.
The Trump administration last month released long-awaited quotas that increase the amount of biofuel that must be blended into America's gasoline and diesel supply. Stronger demand for alternative fuels following the war in Iran has helped boost soybean oil prices to their highest levels in years. That has lifted profits for the processors who buy soybeans from farmers and crush them into fuel.
"You have very strong demand for soybean oil, very strong demand for soybean meal, and relatively flat soybean trading," ADM Chief Executive Juan Luciano said on a call with investors.
ADM executives said the company's trading business is also benefiting from increased soybean exports from the U.S. after a trade deal with China last fall normalized shipments. ADM on Tuesday raised its earnings forecast for the year. Its stock rose 6% and is up 40% this calendar year. Bunge's stock is up almost 50% this year.
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(END) Dow Jones Newswires
May 05, 2026 11:39 ET (15:39 GMT)
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