US soybean crush hits record pace on surging soyoil prices

Soybean processors have benefited from these favorable conditions, with the total volume of soybeans crushed year-to-date increasing by 8.0% compared to the previous year. This accelerated pace is also supported by strong soymeal exports and domestic feed demand.

However, the outlook suggests a moderation of these record margins. U.S. soybean crush capacity is expected to expand by 23% over the next three years to meet demand. This expansion, coupled with increasing global competition from imported vegetable oils, tallow, and used cooking oil, is likely to put downward pressure on soybean oil prices and, consequently, crush margins.

Reports indicate that new-crop soybean purchases by Chinese state-owned firms are offering some hope for a return to more normalized trade, despite current export commitments lagging year-over-year due to a lack of Chinese demand. U.S. soybean stocks remain elevated due to soft export demand.