Global soybean crushing accelerates on strong oil and biofuel demand

Global soybean crushing continues to expand on strong demand for soybean oil and meal, while the biofuel industry remains an additional growth driver in the US. According to Oil World, soybean crushing in key producing countries reached 16.39 mln tons in July, up from 15.26 mln tons a year earlier, with the US, Brazil and Argentina accounting for most of the increase.

The strongest growth was recorded in the US, where soybean crushing reached 5.98 mln tons in July compared with 5.58 mln tons a year earlier. In January-July, crush volumes approached a record 42 mln tons, up 9% year-on-year. US soybean exports also increased on stronger shipments to China. As a result, combined US soybean use for crushing and exports rose 14% to a record 64.9 mln tons.

Brazil crushed 5.66 mln tons of soybeans in July, up from 5.26 mln tons a year earlier, while Argentina processed 4.15 mln tons compared with 3.79 mln tons. Favorable crushing margins and strong demand for soybean oil and meal supported processing in both countries. Brazil also continued to expand soybean exports, shipping 13.14 mln tons in July and 82.39 mln tons in January-July, compared with 76.45 mln tons a year earlier.

Argentina is increasingly relying on soybeans from neighboring countries, particularly Paraguay, to keep its crushing plants supplied. Imports rose to 0.95 mln tons in July from 0.54 mln tons a year earlier and reached 3.9 mln tons in April-July. Meanwhile, Argentine soybean exports fell to just 0.33 mln tons in July from 1.32 mln tons a year earlier, effectively turning the country into a net importer of soybeans to supply its domestic processing industry.

Overall soybean crushing across six major supplier countries increased by almost 6 mln tons in January-July to 100.73 mln tons. At the same time, net soybean exports rose to 112.1 mln tons from 104.19 mln tons a year earlier, indicating simultaneous growth in both domestic processing and international soybean trade.

Tags: China, Brazil, soybean, USA, Argentina, Paraguay