U.S: Although the market expected higher volumes, November set record soybean crushing

The National Oilseed Processors Association (NOPA) once again set a new record level of soybean crushing in the United States for November, highlighting the strength of the sector at the end of this year. The market had slightly higher expectations, estimating a total of 196.173 mln bushels (equivalent to 5.338 mln tons).

However, the numbers actually released were around 193.185 mln bushels (5.257 mln tons). Even though they were slightly below projections, the results represent a historic record for the month of November, reinforcing the role of the sector in increasing the supply of soybean-derived products this season.

This performance mainly reflects the greater volume available in the domestic market, driven by this year’s large crop, in addition to the intensification of purchases by industries due to the generalized decline in soybean prices. Since the beginning of September, crushing has been breaking successive records, accumulating a total of 15.52 mln tons through November. Compared to the same period last season, when the accumulated volume was 14.81 mln tons, there was a significant increase of approximately 4.8%.

This solid performance is also in line with expectations for the entire season, which should reach 65.589 mln tons, up 5.3% from the previous season.

The Brazilian market continues to show little movement in terms of sales. With the industry already supplied and the export window practically closed, there are few offers available for December. This has led many players to withdraw from the market, with expectations of returning only next year. In the case of the new crop, operations remain in line with these expectations.

In general, prices are heading toward new crop levels and adjusting to export parity, especially in the countryside, where the price base reflects this reality. Except for a few isolated cases, in which buyers offer off-market prices for scarce volumes in the physicals, the dynamics remain slow.

At ports, the market also shows little movement. Prices, in general, fell despite the strong volatility of the dollar during the week. The dollar set all-time highs, but the interventions of the Central Bank, with auctions at significant values, brought prices down. This instability makes it difficult to set premiums, which are already beginning to enter negative territory. The expectation is that the lows will intensify with the crop arrival, to start by mid-February 2025.

Tags: prices, United States, soybeans, purchases, projections, crop, Market, crushing