# Soybean Processing Capacity in Expansion Phase | Red River Farm Network

> The US soybean processing industry is in its biggest expansion in 20 years, with new crush plants in Aberdeen, Michigan, and proposed projects in North Dakota and Minnesota. CoBank economist Will Secor expects domestic users to absorb only about 40% of meal in the first year of the new plants, versus roughly 75% typically. He expects more meal to be shipped from the Pacific Northwest, mainly to Southeast Asia.

- Date: 2019-02-08 · published 2019-02-08T12:00:00.000Z
- Category: trade · region US · magnitude medium
- Page: https://feedsoft.ai/events/60664-soybean-processing-capacity-in-expansion-phase-red-river-farm-network
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Surplus meal from new capacity should pressure soybean meal prices and widen basis, with exports to Southeast Asia needed to clear it. Buyers in the Pacific Northwest may see improved meal basis as supply grows.

## Read by commodity

- SBM: bearish ▼
- SOY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2018-05-02 | [Pulling the Trigger on Soybean Prices \| Red River Farm Network](https://feedsoft.ai/events/4610-pulling-the-trigger-on-soybean-prices-red-river-farm-network.md) | -3.5% | -6.5% |
| SBM | 2018-07-12 | [COFCO: China Will Look to the World for Other Protein Souces \| Red River Farm Network](https://feedsoft.ai/events/64150-cofco-china-will-look-to-the-world-for-other-protein-souces-red-river-farm.md) | -1.4% | +1.2% |
| SBM | 2023-10-27 | [China increases imports and processing of soybeans and cancels purchase agreements](https://feedsoft.ai/events/33616-china-increases-imports-and-processing-of-soybeans-and-cancels-purchase.md) | -0.1% | +7.3% |
| SBM | 2024-12-23 | [U.S. soybean meal reaches record exports, driven by increased crush capacity and global demand - Agweek \| #1 source for agriculture news, farming, markets](https://feedsoft.ai/events/11402-u-s-soybean-meal-reaches-record-exports-driven-by-increased-crush-capacity-and.md) | +2.2% | +4.8% |
| SBM | 2023-02-03 | [Soybean prices in Ukraine are falling against the backdrop of reduced export demand](https://feedsoft.ai/events/12881-soybean-prices-in-ukraine-are-falling-against-the-backdrop-of-reduced-export.md) | +0.3% | -1.2% |
| SOY | 2019-04-01 | [U.S. Soybean Exports to China Increased in February; Trade Negotiations Return to Washington, D.C. \| Farm Policy News \| Illinois](https://feedsoft.ai/events/59451-u-s-soybean-exports-to-china-increased-in-february-trade-negotiations-return-to.md) | +1.7% | -4.2% |
| SOY | 2018-05-23 | [U.S.-China trade row sows confusion in farmer planting plans](https://feedsoft.ai/events/64914-u-s-china-trade-row-sows-confusion-in-farmer-planting-plans.md) | -0.7% | -13.7% |
| SOY | 2018-02-20 | [U.S. soybean exports in prime spot for China buys - Morning Ag Clips](https://feedsoft.ai/events/66494-u-s-soybean-exports-in-prime-spot-for-china-buys-morning-ag-clips.md) | +1.2% | +0.1% |

## Sources

- rrfn.com: https://www.rrfn.com/2019/02/08/soybean-processing-capacity-in-expansion-phase/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.