Expanded soybean capacity could spell trouble for long-term margins

Demand for cleaner fuels, like renewable diesel, has been on the rise in the United States. While soybean processors have reaped the benefits from increased production, a new report shows it could threaten margins long-term.

U.S. soybean processors are expected to increase production capacity by more than 20 percent in the next three years but an increase in domestic soy crush and global competition could spell trouble and put soybean oil prices under pressure.

A report by CoBank shows years of record margins have processors ready to weather the downturn but they warn the viability of long-term plans could be in jeopardy.

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