Due to the growing demand for soybean oil, soybean crush capacity is rapidly expanding across Nebraska to increase soy oil output.
Will this lead to increased soybean prices? How do you factor these elements into your risk management plan?
In recent years, there has been a notable increase in demand for soybean oil for use in renewable fuels.
Here’s some quick math to consider:
- One bushel of soybeans weighs 60 pounds.
- Of that, 12 pounds (20%) is soybean oil, which accounts for 37% of the soybean’s value.
- The remaining 47 pounds or so (80%) is soy meal, making up 63% of the soybean’s value.
Jacquie Holland, an economist with the American Soybean Association, joins us on Grain IQ to explain how crush expansions in the Midwest will impact your grain marketing plan.
Grain IQ is a production of the Nebraska Rural Radio Association, in cooperation and with support from the Nebraska Soybean Board.