The US soybean industry is heading towards record crushing volumes in the current marketing year, supported by rising biofuel demand and an expansion in processing capacity, according to the US Department of Agriculture (USDA), Brownfield Ag News reported.
The USDA has projected soybean crushing at 2.78 billion bushels for the current marketing year, more than 5% higher than the previous year’s volume. More than half of domestic soybean oil consumption is expected to be used for biofuel production.
Jeramie Weller of Minnesota Soybean Processors expects the strong crushing trend to continue for at least the next 15 months. He attributed the demand momentum to robust Renewable Volume Obligations and the Environmental Protection Agency’s biofuel volume requirements for 2026 and 2027.
He also pointed to continued demand for soybean meal, alongside soybean oil, as a factor supporting processing activity.
Strong demand for both products is improving crush margins, while firm basis values are providing additional support to soybean farmers, Weller said.
The outlook highlights the growing role of biofuel production in driving demand for US soybean oil and supporting higher processing volumes.
