Soybean processors in the western US Midwest are offering hefty premiums for immediate deliveries of the oilseed as persistent rains delay the early harvest, tightening supplies and forcing some plants to scale back production, Reuters reported, citing interviews with grain merchandisers and publicly reported company data.
The scramble for soybeans has sent cash prices soaring, creating an unexpected windfall for farmers able to harvest their crops and get them to market, or sell off the last of their old crops.
US soybean processing capacity has expanded in recent years, largely due to rising demand for biofuel. The USDA has projected that processors will crush a record-high 2.78 billion bushels of soybeans in the current crop year, a brisk pace prompted by robust profit margins.
Yet some crushers have struggled to keep operating this month, analysts said, as supplies from last year's harvest dwindle while the 2026 harvest is off to a slow start.
Charlie Sernatinger, executive vice president of Marex, said there were "a ton of crush plants out there gasping for beans," with potential for soybeans being shipped from eastern regions.
Rains slow harvest
Many growers are unable to take advantage of the sudden price spike. Late-summer rains have left fields too muddy to support harvesting equipment and slowed crops' natural dry-down process, and forecasts called for more showers through next week.
Iowa farmer Roger Cerven sold off the last of his old-crop soybeans recently, hauling them more than 50 miles despite soaring fuel costs, to Bunge's soybean processing plant in Council Bluffs, Iowa. The processor at the time was offering a 65-cent premium on every bushel delivered.
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