By Karl Plume
February Crush Performance
CHICAGO, March 28 (Reuters) – The U.S. soybean crush likely increased in February to 5.893 million short tons, or 196.4 million bushels, following weather-reduced operations the previous month, according to analysts surveyed by Reuters ahead of a monthly U.S. Department of Agriculture report.
The soybean processing industry, like a well-oiled machine, is showing resilience and strength as it powered through challenges.
Historical Perspective
If the estimate, gathered from eight analysts, is realized, it would be up 0.8% from the 194.8 million bushels crushed in January and up 11.0% from the February 2023 crush of 176.9 million bushels.
The average crushing pace of 6.773 million bushels a day in February would also be the largest for any month on record, according to USDA data.
The soybean processing sector, reminiscent of a sturdy ship navigating turbulent waters, continues on an upward trajectory.
Market Expansion
U.S. soybean processing capacity has substantially increased as crushers built new plants and expanded existing ones to capitalize on demand for vegetable oils to produce biofuel.
The industry, akin to a growing forest that stretches its branches towards the sky, is adapting and expanding to meet the rising demand.
Recovery from Adversity
The monthly crush had exceeded 200 million bushels for three straight months before a cold snap in mid-January disrupted the historically brisk pace. Operations ramped back up again in February, aided by unusually mild winter weather across much of the country, analysts said.
Just as a phoenix rising from the ashes, the soybean crush industry bounced back swiftly from challenges, showcasing its resilience.
Future Outlook
Crush estimates ranged from 194.1 million to 198.5 million bushels, with a median of 196.3 million bushels.
The USDA is scheduled to release its monthly fats and oils report at 2 p.m. CDT (1900 GMT) on Monday, shining a light on the industry’s future path.
Market Analysis
U.S. soyoil stocks as of Feb. 29 were estimated at 2.244 billion pounds based on the average of estimates from five analysts.
If realized, the stocks would be up 10.6% from 2.029 billion pounds at the end of January but down 5.1% from stocks totaling 2.364 billion pounds at the end of February 2023.
Estimates ranged from 2.200 billion to 2.283 billion pounds, with a median of 2.250 billion pounds.
As the market fluctuates, the industry keeps a close eye on stock levels to navigate the path ahead.
Association Insight
The National Oilseed Processors Association reported that its members, which account for about 95% of the U.S. soy crush, processed 186.194 million bushels in February, while end-of-month oil stocks rose to 1.690 billion pounds.
Through collaboration and innovation, the industry is set for continued growth and resilience in the face of challenges.
(Reporting by Karl Plume; Editing by Lisa Shumaker)
For inquiries, contact Karl Plume at karl.plume@thomsonreuters.com; +1 313 484 5285.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
