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A surge in domestic soybean processing is underpinning U.S. oilseed prices, with industry experts describing the current crush pace as 'unbelievable' amid a multi-year boom in processing margins.
Ed Usset, grain market economist with the University of Minnesota Extension, said margins have remained exceptionally strong even as new processing capacity has come online over the past year, with more facilities expected to ramp up in the near term.
Speaking to Brownfield Ag News, Usset noted that soybean oil consumption is climbing largely because the oil serves as a critical feedstock for biomass-based diesel production. He pointed to the December Board crush margin, which he said is trading near $2.60 per bushel — more than double the levels seen a decade ago, when margins typically hovered around $1 per bushel or less.
Earlier this month, the U.S. Department of Agriculture raised its 2026/2027 soybean crush estimate by 30 million bushels to 2.780 billion bushels, reflecting the strength of domestic demand.
Source: Brownfield Ag News