US December soybean crush hits record high: USDA

US soybean crushing hit a record high of 5.95 million short tons (198 million bushels) in December, up 3% on the year and 4% on the month, USDA data showed late Tuesday.

The December soybean grinding figure landed 3% above trade estimates with the average daily crush pace at an also record of 191,732 short tons (6.39 million bushels).

The report was bullish for soybeans with front-month futures jumping some 8 c/bu in the first 15 minutes of the overnight session.

The USDA pegged crude soybean oil production at 2.32 billion pounds in December, 4% higher both on the month and on the year while refined soybean oil production was reported at 1.64 billion pounds, 1% lower on the month and 4% above December 2020 levels.

Soybean oil stocks came in higher than expected at 2.47 billion pounds while soymeal stocks jumped 35,000 st on the month to 411,000 st.  

“The report is seen supportive for soybeans, neutral for meal and slightly negative for soybean oil,” Terry Reilly from Futures International said in a note to clients.

“It appears implied soybean oil demand was better than expected with stocks up 60 million pounds from November while production increased 89 million pounds,” Reilly added.