US soybean crush falls to 13-month low

US soybean crushing volumes fell more sharply than analysts had expected in September, reaching their lowest level in 13 months. The main reasons were scheduled maintenance at processing plants and harvest delays that restricted soybean supplies. This is according to data from the National Oilseed Processors Association (NOPA).

According to the association, NOPA members crushed 196.3 mln bushels of soybeans in September, down 4.5% from August (205.456 mln bushels) and 0.8% below the September 2023 level (197.863 mln bushels). Actual crushing volumes fell short of market expectations, as analysts surveyed by Reuters had forecast an average of 203.737 mln bushels.

In recent years, US soybean processing capacity has expanded significantly due to growing demand for vegetable oils used in biofuel production. However, seasonal maintenance at crushing plants ahead of the autumn harvest temporarily reduced output. Untimely rainfall in the western Midwest also delayed soybean harvesting and restricted deliveries to processing facilities. Due to limited raw material supplies, some plants were forced to reduce crushing volumes or temporarily suspend operations.

The most significant decline was recorded in Iowa, the largest soybean processing state in the US. According to NOPA, local plants crushed 13.2% fewer soybeans in September than in the same month of the previous year. This was one of the factors contributing to the overall decline in US soybean crushing activity.

Meanwhile, soybean oil stocks held by NOPA members fell to 1.053 bln pounds as of September 30, down 12.3% from the end of August (1.201 bln pounds). This was the lowest month-end inventory level since November 2014. The decline was sharper than analysts had expected, with forecasts averaging 1.116 bln pounds. Lower crushing volumes and shrinking soybean oil stocks could increase pressure on the US domestic vegetable oil market.

Tags: soybean, USA