US renewable diesel (RD) production rebounded in April to a new all-time high, and market sources expect the upward trend will continue in the second half of the year — a factor that should be bullish for the soybean oil market. 

RD output was boosted by the conversion of US refiner Phillips 66’s traditional Rodeo oil refinery in California into a biorefinery. In February, Rodeo started producing 30,000 barrels per day (equivalent to 460 million gallons per year) of renewable fuels, with output expected to reach 50,000 bpd (800 million gallons per year) by the end of June, the company said previously.

Factoring in the completed conversion of Rodeo, domestic RD demand for soybean oil could ramp up toward 555 million lbs per month in the final months of the year, up from 367 million lbs per month in February.

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