U.S. August soybean crush dropped by more than expected 4.4 million bushels to 165.1 million bushels, lowest level in nine months (Nov) and well below 172.8 million during the month of July and compares to 168.1 million during August 2019. The daily rate slowed to 5.32 million bushels, lowest since September 2019 and down from 5.57 million (4.5 percent) last month and below 5.42 million during August 2019. The southeast region was hit the hardest, dropping to 16.9 million bushels from 21.4 comparable month year earlier, followed by the MN/ND/SD/MT region.
End of August soybean oil stocks were 1.519 billion pounds, only 4 million pounds above an average trade guess, despite the 4.4 million bushel crush miss by the trade and above 1.401 billion year earlier. The soybean oil yield of 11.60 pounds per bushel was unchanged from the previous month, an indication implied soybean oil demand was not as good as expected during August.
Soybean meal exports were a large 754,600 short tons, second highest for the month of August in history, down from 876,000 during July and above 699,000 short tons from August 2019. The meal yield fell to 47.06 from 47.22 for July.
The report was seen a little friendly for soybean meal over soybean oil, but the lower than expected crush and high soybean oil stocks relative to the crush rate looks like it adds to the negative sentiment see for the overall soybean complex.
Senior Commodity Analyst – Grain and Oilseeds
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