This report is the result of grants from the soybean growers in Iowa for investigating the potential use of soybean oil in hydraulic systems and other industrial lubricant applications. It was observed that soybean oil naturally performs well in lubricating pump components. The lack of oxidative stability, however, causes an increase in the viscosity of untreated soybean oil during use in hydraulic systems. Three approaches were identified to address this problem. One was the use of additives, second was the use of generically altered seeds with altered fatty acid profiles, and third was through chemical modification of the soybean oil. The results indicated that the performance of soybean oil can be improved through one or more of the approaches identified. (C) 1996 Elsevier Science Ltd.