NOPA Crush Confirms Sluggish Soybean Demand

NOPA Crush Confirms Sluggish Soybean Demand

 

The National Oilseed Processors’ Association [2] (NOPA) monthly crush report released last week confirmed that domestic soybean [3] demand remains sluggish. NOPA pegged its members’ November soybean crush at 141.3 million bushels, compared with trade estimates averaging 140.9 million bushels, according to a survey taken by Dow Jones Newswires.

The monthly crush was up slightly from the October level of 141.2 million bushels, but was down 5.1% from the November 2010 crush of 148.9 million bushels.

NOPA reported its members held soy-oil stocks of 1.876 billion pounds at the end of November compared with trade estimates averaging 1.850 billion pounds. The soy-oil stocks were virtually unchanged from a month earlier despite reduced production, but were down 33.7% from a year earlier.

The NOPA crush data supports the cut USDA [4] made to its projection of the 2011-2012 crush in its Dec. 9 supply/demand update. USDA trimmed its crush projection by 10 million bushels to 1.625 billion bushels citing reduced domestic soy-meal consumption and a higher meal extraction rate.

NOPA reported a November meal yield of 47.81 lbs./bu., which was up from 47.64 lbs. in October and just below the November 2010 yield of 47.87 lbs.

The NOPA soy-oil yield fell to 11.31 lbs./bu. in November from 11.56 lbs. in October and 11.48 lbs. in November 2010.

 

Editor’s note: Richard Brock, Corn & Soybean Digest's marketing editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.