February 16, 2010

NOPA January soy crush seen slipping to 162 million bushels

The soy crush rate in the National Oilseed Processors Association's for January is expected to show a decline from the previous month, coming in near 162.03 million bushels, according to analysts.

Estimates for the report ranged from as low as 157.0 million bushels to as high as 166.0 million bushels. In December, the crush was measured at 164.4 million bushels, and analysts said the crush in January would drop by about 2.37 million bushels.

The NOPA report only includes figures from member processors.

The crush continued to move at a solid clip, but after record processing in prior months the crush slowed slightly in January compared to December on seasonal patterns. The crush continued to be driven by demand for soymeal amid the good export programme for meal.

A reduction in domestic use for soymeal on a month over month basis led to a lower crush comparing January to December, said Anne Frick, senior oilseed analyst with Prudential Bache in New York.

However, there was a wide range of estimates from analysts.

One reason for the variance in the range of estimates is a result of strong export demand and how that demand offset slower domestic use.

Meanwhile, NOPA soyoil stocks in January were expected to rise to 2.701 billion pounds from 2.594 billion pounds in December. Estimates ranged from as low as 2.679 billion pounds to as high as 2.744 billion pounds.

A strong level of crushing activity served as the catalyst for the buildup of soyoil stocks, analysts said.

A drop in soyoil being used for biodiesel helped build soyoil stocks as well, analysts added.