Soybean crush margins are set for a bull run through the end of this year, according to new research by Argentinian exchange Bolsa de Comercio de Rosario. Last week’s decision to expand the US biodiesel mandate will compound the effect of reduced mid-year South American beans output and similarly constricted palm oil availability, the exchange said.
Soybean oil already tested daily trading limits immediately after EPA unveiled its final 2017 advanced biofuel mandate, which will push US crushers to continue their marketing year to date campaign which already stands as the second largest in the country’s history, the exchange said. Argentina broke its own soybean crushing volume record in the first quarter of this year.
Argentina is the world’s second largest soybean crusher, boasting 205,000t per 24hr day of crush capacity versus the 205,000t/24h installed in the US. China is the world’s largest crusher by far, boasting 430,000t/24h (129mn t/yr), although its fleet currently operates at only around 60% capacity. Brazil boasts 180,000t/24h of beans crushing capacity.
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MS – 28/11/2016