The USDA reported a record amount of soybeans crushed in a month for December 2023 at 6.13 million short tons in its latest Fats & Oils report (released Feb 1, after market close). This is an increase of 2.1% m-o-m and an increase of 9.0% y-o-y. This is not surprising as the US continues to increase its oilseed crushing capacity as new facilities are brought online (like the ADM Spiritwood plant that opened last fall in North Dakota).
Despite the increasing domestic demand for soybeans, the futures soybean price closed lower on Feb 2nd (the day after the report was released). The March ‘24 soybeans futures contract closed -14.75 ¢/bu lower to 1186.75 ¢/bu. This was due to concerns about the soybean supply from Argentina and lackluster export demand.
For now, the market considers the supply and export demand forces to be more impactful than domestic demand.
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