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Expanding Crushing Footprint Changes Trade Flows

Four large new soybean crushing plants, one small plant scheduled to open in large soybean surplus areas

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Four large new soybean crushing plants and one small plant are scheduled to be built in increasingly large soybean surplus areas, reports U.S. Soy.

Plants are planned for Ithaca, MI, Aberdeen, SD, Spiritwood, ND, Crookston, MN, and Massena, NY.

The new soybean crushing plants create challenges and alters trading routes. For existing domestic soybean crushing plants that sold directly into the soybean meal deficit areas, new customers are required to fill the approximately 3.6-million-ton soybean meal void created by the new crushing plants. That can be accomplished primarily by either exporting more soybean meal, lowering price to capture more market share within truck distance (typically 50 miles), and/or reducing crush.

For export origination facilities, such as shuttle train elevators, a new crushing plant will buy away approximately 150 million bushels of supply origination.

Read the full report here.

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