Archer-Daniels-Midland Co Idles Soybean Processing Plant

By Julie Ingwersen and Karl Plume

CHICAGO (Reuters) – Archer-Daniels-Midland Co (ADM) is idling its only soybean processing plant in Iowa amid a record U.S. harvest. This temporary closure, lasting from mid-October through November, tightens supplies of soymeal for livestock and eliminates a market for farmers to sell their soy, exacerbated by low crop prices.

The Des Moines facility crushes about 5 million bushels of soybeans per month, accounting for roughly 12% of Iowa’s monthly soybean crush. Low expectations during the shutdown have driven cash soymeal prices at the Gulf export terminal to a decade-high.

Despite the shutdown being surprising, especially during harvest, ADM has maintenance work planned to address air quality violations and has reassured customers that they can meet their needs.

The U.S. soybean crushing sector has expanded recently, but the monthly soybean crush fell to a near three-year low in August due to seasonal maintenance. Traders, expecting higher production due to new crush capacity, were caught off guard by delays, leading to a soymeal shortfall.

As a result, Chicago Board of Trade October soymeal futures hit three-month highs, with cash basis bids for prompt soymeal shipments reaching 10-year highs. Additionally, Hurricane Helene has led to the closure of another ADM crushing plant in Valdosta, Georgia.