January 16, 2024
US soybean processing sector eyes record monthly crush to cap banner year
As the United States soybean processing industry concludes what experts predict to be a stellar year, analysts anticipate another record-breaking monthly crush in December, according to projections ahead of the National Oilseed Processors Association (NOPA) report, Nasdaq reported.
Members of NOPA, handling approximately 95% of all processed soybeans in the US, are estimated to have crushed 193.120 million bushels last month, as indicated by the average of estimates from 10 analysts. If realised, this figure would mark the largest crush for any month on record, surpassing the previous high of 189.774 million bushels set in October. The December crush is anticipated to increase by 2.2% from November and 8.8% from December 2022.
While US agriculture faces challenges such as declining crop exports and multi-year lows in grain and oilseed prices, the soybean processing industry stands out as a bright spot. Fuelled by abundant soybean supplies and robust margins, the sector expanded, capitalising on strong demand for soy oil, particularly for renewable fuels. Additionally, a severe drought in Argentina, a top soy-product exporter, last year boosted demand for US soymeal.
However, analysts caution that a rebound in Argentine production in 2024 could present a more challenging market for US processors. Margins have already begun to narrow, signalling potential headwinds for the industry.
Projections for the December crush range from 189.0 million to 197.380 million bushels, with a median estimate of 193.2 million bushels.
- Nasdaq