February 18, 2022

Louis Dreyfus Company reports fire at its biggest US soy processing facility

Louis Dreyfus Company (LDC) said a fire broke out at its biggest US soy processing facility in Claypool, Indiana, which resulted in a suspension of soybean deliveries from the plant, Reuters reported.

No workers were injured from the fire. The cause of the fire and the amount of damage were undetermined.

The delivery suspension could further slow soymeal and biodiesel production at a time when both are in high demand. Plants in Iowa and Minnesota that were shut down for maintenance resulted in rising soymeal and biodiesel prices.

An industry source said the Claypool, Indiana facility has the capacity to crush 175,000 bushels of soybeans daily and is currently operating at 92% capacity.

Soymeal futures on the Chicago Board of Trade reached a 7-1/2 year high last week. The March contract hit US$450.70, up US$11.90 at mid-session on Wednesday. One broker said in Illinois and Indiana rail markets, cash soymeal basis offers increased US$3 per ton due to the fire.

-      Reuters