NOPA: Crush Tops Expectations by Wide Margin, But Strong Demand Still Pulls Stocks Lower

Posted on Wed, 07/15/2020 - 15:51

Members of the National Oilseed Processors Association crushed 167.3 million bu. of soybeans last month, which easily topped the average trade guess of 162.2 million bu. based on a survey conducted by Reuters. In fact, the tally topped the top end of trade guesses by about 1.3 million bushels. The June crush was up 18.4 million bu. from NOPA’s figure the year prior and the 2.3-million-bu. seasonal slowdown in crush from May was far less dramatic than anticipated.  

USDA increased its soybean crush forecast in the July WASDE by 15 million bu. to 2.155 billion bu., and with only four months of data (June through September) remaining until the end of the marketing year, the higher USDA forecast argued that USDA was expecting the recent strong pace of demand would continue.

Also, NOPA reported soyoil stocks of 1.778 billion lbs. at the end of June, which was 35 million lbs. lighter than expected, despite the far stronger crush figure. Stocks fell 102 million lbs. month to month, but they were up 243 million lbs. from year-ago.