# New production capacity could threaten soy processor profitability

> A CoBank report says three new US soybean processing plants, two expected by end-2019 in Michigan and South Dakota and one by 2021 in North Dakota, could add at least 6% to US crush capacity, about 120 million bushels a year. The report warns that processor margins could be squeezed by late 2019 if overseas demand for meal and oil does not grow to absorb the output.

- Date: 2018-12-10 · published 2018-12-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/61639-new-production-capacity-could-threaten-soy-processor-profitability
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Expanded crush capacity will raise domestic meal and oil supply, which is bearish for soybean meal and oil prices unless export demand keeps pace. Soybean bean demand from crushers rises, which is mildly supportive for soybeans.

## Read by commodity

- SBM: bearish ▼
- SBO: bearish ▼
- SOY: bullish ▲

## Sources

- farmprogress.com: https://www.farmprogress.com/soybean/new-production-capacity-could-threaten-profitability-for-soy-processors
- feedstuffs.com: https://www.feedstuffs.com/grain-market-news/new-plants-more-capacity-may-threaten-soybean-processor-profitability

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