The National Oilseed Processors Association (NOPA) reported that U.S. soybean crushings among its members totaled 197.86 million bushels in September, up 11.6 percent year-over-year. Volumes came in well above the average trade guess of 187 million bushels. 

Year-to-date crushings for the calendar year are running nearly 7 percent ahead of last year at 1.72 billion bushels. 

Soybean oil stocks at the end of September totaled 1.243 billion pounds, up 16.6 percent from a year ago. However, volumes were at a nine-month low. Stronger-than-expected crushings pinned soybean oil inventories above analyst expectations. 

Inventories rose back above year-ago levels in August for the first time since last March. Uncertainty over future biofuel policy and lower U.S. soy oil exports have likely driven the year-over-year increase. 

Soybean oil prices declined through the third quarter of this year as biomass-based diesel producers faced policy uncertainty and thin margins. The U.S. government shutdown could stall progress on the finalization of upcoming renewable volume obligations for biofuel producers. 

Strong soybean crushings could lead to U.S. soybean oil accounting for a larger share of domestic biomass diesel production. In July, soybean oil accounted for 37 percent of total feedstock usage, compared to about 31 percent in March.

Higher soybean crushings come as U.S. exports have been lagging. The USDA reported that soybean export inspections totaled 992,000 metric tons last week, with total shipments running 26 percent behind last year.

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