Something that you may not know is that soybean oil is one of the most popular edible oils in the world, prized for its neutral flavor, adaptability, and use in both industrial and culinary applications (such as biodiesel). It comes from soybeans, which are the second-largest oilseed crop in the world after palm oil. The distribution among the countries that produce the most soy oil worldwide is shown in the chart below. Let us understand what drives these massive production patterns as per 2023-2024 data insights. 

Country-Wise Overview

China: The nation produces approx. 19.5 million metric tonnes (MMT) and leads with 29% of global production, driven by high domestic demand and large-scale crushing capacity for soybeans. Despite reliance on soybean imports in large proportions, the country’s refining infrastructure allows it to lead in processed oil output.

United States: With 13.06 MMT, the U.S. holds a 19% share in global soybean oil production. This is fueled by high productivity, advanced agricultural technology, and a thriving biodiesel industry.

Brazil: Brazil’s share stands at 17% as production reaches 11.58 MMT. As the world’s top soybean grower, Brazil has a prime role to help meet global oil demand—especially as trade shifts are moving buyer preferences toward South America.

Argentina: The nation contributes 12% of the global output (8.4 MMT) and is known for converting most of its soybean crop into value-added products like oil and meal for global trade.

European Union: With 4% of global production (2.85 MMT), the EU relies on efficient oilseed processing but is largely dependent on imports of raw soybeans.

India: India produced 1.98 MMT (3% of global share). India is one of the world's biggest soybean oil importers because, despite growing domestic production, it still falls well short of the nation's needs.

Why Do These Nations Excel

China & India—Both nations have soaring populations and urbanization, fueling explosive growth in edible oil consumption. China imports massive quantities of soybeans but processes them domestically, turning inward demand into processing power.

United States—One of the world’s most efficient producers, with strong domestic consumption, export of soybean oil and biodiesel feedstock.

Brazil—Brazil has become the world’s leading soybean grower due in part to trade shifts—many major nations turned to Brazil, especially after tariff disruptions.

Argentina— Although its overall soybean output trails Brazil and the U.S., over 80% is processed locally into oil and meal for export. The recent soybean harvests in the nation have faced volatility from weather delays.

Insights for Global Commodity Traders

These trends signal both strategic opportunities and risks for global soybean oil traders:

• Supplier concentration is rising—in particular, Argentina and Brazil are strengthening export positions. Soybean oil importers sourcing from global markets must diversify risk exposure.
• Trade policy volatility matters. Tariff shifts between the U.S., China, and others can rapidly alter sourcing economics.
• Supply vulnerabilities such as Argentine weather disruptions (e.g., 2025 delays) underline the importance of supplier diversification to nations such as Brazil to hedge business risks.
• Demand shifts to big importers like India—also now turning to China when advantageous—mean traders must monitor freight costs and lead times closely.

China, the U.S., Brazil, Argentina, the EU, and India form the core of the global soybean‑oil production landscape. While production volumes and export strengths vary, together they shape global availability, pricing, and supply risk.

By staying agile and informed, you can navigate a market where rising demand, geopolitical shifts, and environmental scrutiny define profitability and resilience.

A data-driven approach to monitoring weather, trade policy, and sourcing changes is crucial for commodity traders and supply chain professionals. Because of its ability to facilitate bulk trade, Tradologie.com is a modern digital platform for efficient and secure agro-commodity trade. It comes highly recommended for vegetable oil importers and exporters looking to manage global markets with ease.