July 16, 2007

 

US June soy crush seen at 136.4 million bushels

 

 

Soybean crush rates for June in the National Oilseed Processors Association's (NOPA) monthly soybean crush report are expected to decline to about 136.4 million bushels from the previous report, according to a survey of industry analysts.

 

NOPA's report on the June soybean crush is scheduled to be released today (July 16) at 8:30 a.m. EDT.

 

Estimates for the report ranged from as low as 133.8 million bushels to as high as 141.0 million bushels. In the previous report, crush for the month of May was measured at 143.4 million bushels.

 

The month-on-month decline expected in the crush is mostly due to one less crush day in June and the seasonality of summer crush rates, said Dan Basse, president of AgResource Co. in Chicago.

 

Despite the expectations for a month-on-month decline, the crush is estimated at a record for the month of June, as favourable margins and the availability of soybean supplies kept processors moving at solid clip, Basse said.

 

Prudential Financial senior oilseed analyst Anne Frick said in addition one less crush day, competition from a pick up in Argentina crushing helped trim crushing from May to June.

 

NOPA soyoil stocks in June are expected to decline by 21 million pounds to 2.903 billion pounds from the 2.924 billion reported in May. Estimates ranged from as low as 2.824 billion pounds to as high as 2.970 billion pounds. Most analysts surveyed called for soyoil stocks to decline.

 

The report should show soyoil stocks declining in June, due to a smaller crush and a pick up exports during the month, Frick said.

 

However, some analysts are looking at slower domestic demand as a catalyst for sustaining soyoil stock levels.