Today USDA increased estimated 2017/18 soybean crush to 2.055 billion bushels, up 15 million bushels from last month’s forecast. Higher crush translated into a 150 million pound increase in 2017/18 soybean oil production, now estimated at 23.645 billion pounds. This increase was more than offset by a 200 million pound increase in domestic use, split evenly between biodiesel and food/feed/other industrial. USDA raised soybean meal production by 400,000 tons, with 100,000 tons of that increase going to domestic use and 300,000 tons going to exports.
Projected soybean crush in 2018/19 was increased to 2.070 billion bushels, up 10 million bushels from the August forecast and up 15 million bushels from 2017/18. USDA is expecting strong demand for soybean meal to keep processors busy. While soybean oil use in food/feed/other industrial is seen increasing only 100 million pounds from this season, USDA believes the biodiesel industry will use 7.8 billion pounds of soybean oil in 2018/19, up 11 percent from this marketing year.
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