USDA is forecasting record soybean crush this marketing year on strong biofuel demand and expanded processing capacity.
More than half of domestic soybean oil consumption is expected to go toward biofuel production.
Jeramie Weller with the Minnesota Soybean Processors tells Brownfield he expects crush strength to continue for at least the next 15 months.
“Obviously with strong Renewable Volume Obligations, the robust volumes we got from the EPA for 2026 and 2027 have been a big demand pull for soybean oil, but we’ve also seen a strong demand continue on the soybean meal side.”
Weller says the strong demand for soybean meal and oil supports on crush margins, while strong basis values are benefiting farmers.
For the current marketing year, the USDA has soybean crush forecast at 2.78 billion bushels, an increase of more than five percent from the previous marketing year.
EDITOR’S TAKE:
Very encouraging news for soybean producers. Products such as biodiesel are becoming for soybeans what ethanol is for corn. Growth of this magnitude is sure to provide a stronger foundation for soybean prices going forward. Another good reason to put your inventory on AgTruckTrader.com®. Used in conjunction with 179 rapid depreciation, it creates a strong platform for you to conquest more sales in 2026-2027.
