The National Oilseed Processors Association on Friday released its February Crush Report.
Crush demand has been strong, but recently fell short of expectations.
Market anxiously waited for monthly crushing volumes. Brian Grossman, market strategist with Zaner Ag Hedge, kept an eye out for the latest report. Grossman seemed a little bit disappointed after its release.
“It did come as a little disappointment, below the average trade estimate. The average trade was looking for 158 million bushels of soybeans and it came in at 154.5 (million bushels). A bit disappointing considering the pace we’ve been on lately. But that still leaves us with a record Quarter 2 crush. All-in-all, not bad,” Grossman said.
February crush fell shy of the all-time record set in Quarter 1.
However, grain markets found stabilization in the news.
“We have been fairly excited through the entire day,” Grossman said. “Corn (is) being a little bit of a lame duck, but soybeans (are) up. We started the day strong, sold off a bit and have been working our way back up. We’re seeing support in everything.”
Grossman notes a couple different factors have been influencing domestic crush.
“A lot of that has been coming from strong domestic demand. We have also been exporting soy meal at a pretty strong pace,” Grossman said. “While our soybean exports have definitely taken a hit, we have been able to make up some of that ground through crush. Actually, (we’re) gaining a little considering it’s a value-add product.”