Additional soybean crushing facilities should meet American demand
A market analyst says additional U.S. soy crushing capacity could leave American soybean farmers less dependent on foreign markets.
Brian Burke with John Stewart and Associates says the U.S. may add an additional 450 million bushels of capacity within the next five years. “As a whole, I think the U.S. can accommodate this extra crush capacity because there are some export headwinds with Brazil’s growth over the long term.”
He tells Brownfield additional crushing facilities won’t have a significant impact on the market and expects U.S. exports to slow because of Brazil’s soybean production. “It’s quite possible as some of these plants come online, we’re just simply converting some of the soybeans we’re trying to export into something that we’re crushing domestically instead,” Burke says. “Again, every year is different. Mother Nature has something to say about every production cycle in this country or in South America as is the case this year.”
Brownfield interviewed Burke at the AgMarket.Net meeting in Kansas City.