US soy crush seen lower in May

The soy crush rate in the National Oilseed Processors Association's monthly soy crush report for May is expected to drop from April to about 130.2 million bushels, according to a survey of industry analysts.

The daily soy crush rate tailed off in May because seasonal down time in the industry and tight soy supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soy from the last harvest are dwindling because of strong demand and a lack of selling by farmers.

Estimates for the report ranged from 123.2 million bushels to 135 million bushels. In April, the crush was measured at 131.7 million bushels.

An analyst who projected an increase said an extra day in May points to a stronger crush rate than in April. However, he noted the daily grind rate was likely down because of the limited supplies of soy.

NOPA soyoil stocks, meanwhile, were expected to rise to 2.83 billion pounds in May from 2.812 billion pounds in April, according to reports. Estimates ranged from 2.804 billion pounds to 2.877 billion pounds.

Despite the lower crush pace in May, soyoil stocks continued to grow. Favourable crushing margins present a profitable opportunity for processors to crushing for meal, analysts said. With demand from the biodiesel industry anemic in the absence of the US$1 a gallon blender's tax credit, soyoil off take remains slow, they said.