U.S. oilseed processors crushed 230 million bushels of soybeans in December, up 5.5 percent year-over-year. Crushings came in just below the average Bloomberg survey analyst estimate of 230.5 million bushels. Year-to-date crushings for the marketing year reached 892.5 million bushels, sitting 7.5 percent higher than the previous season.

Soybean oil stocks at the end of December totaled 2.18 billion pounds, rising 29 percent year-over-year. Softening U.S. soybean oil demand internationally and domestically has led to recovering supplies. Stalled growth in soybean oil used in biomass-based diesel production has been a driving factor. But higher soybean oil prices also deterred demand from international buyers.

Soybean meal inventories at the end of the month totaled 350,800 metric tons, down 15.3 percent year-over-year. Soybean meal production remained well above year-ago levels with strong crush values, ultimately challenging prices this winter.

Combined soybean crushings (January-November) for the U.S., Brazil, and Argentina totaled 149.6 million metric tons. That is up 1.5% above the previous season. The growth can be primarily attributed to U.S. crushings, which are running 7.4% ahead of last year, while Argentina crush has experienced 2.3% growth during that time frame.

Interestingly, soybean crushings in Brazil are running nearly 6% below last year despite record production last season. That means the majority of excess bushels have been exported rather than crushed domestically, largely due to the fact that Brazil doesn’t have the same processing infrastructure as the U.S. and Argentina.

Still, strong crush numbers between the three nations have kept a lid on global prices despite the sharp run-up in November. But demand for meal, particularly in the U.S. has been consistent, as seen in weekly USDA reports.

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