China Soybean Tariffs to Hit South America’s Crush

South America’s global soymeal market share will decline if China taxes US imports of soybeans, as US crush margins would widen, increasing meal exports and undercutting its southern neighbour, Rabobank said Thursday.

The proposed tariffs on US soybeans by China would have “severe” implications on global trade, the Dutch bank said, shifting China’s soybean demand – the largest net importer – from the US to South America.

China imports 90% of its soybean needs, of which 34% are sourced from the US, and Chinese crushers would not be able to pass on the inflated costs.

Reduced demand for US beans, partially offset by rising exports to the EU and Southeast Asia, would drag down US prices, while American farmers would opt to plant more corn and fewer beans, the bank said.

However, the fall in US bean prices would widen local crush margins and increase US crush rates, as the country becomes a more dominant soymeal exporter fuelled by an increasing global demand for protein.

Meanwhile, a rise in Chinese demand for South American beans would have a bullish effect on local bean prices, while global soymeal prices will be capped by the rise in cheaper American soymeal exports.

South American soymeal prices will have to rise to ensure a viable crush, “but this will weaken the price-competitive advantages of South America as the leading soymeal exporter,” the Dutch bank said.

Longer term, the Dutch bank expects an expansion in crush capacity in the US, EU and South-East Asia, with limited growth in South America and China, while South America, the EU and China would each increase soybean plantings.


Recap: 86th Oil Mill Operators Short Course … April 8-10 … Indianapolis, IN

Oilseed processing industry professionals from the United States, Canada, and Europe convened for the 86th annual Oil Mill Operators Short Course, April 8-10, at the Westin Indianapolis hotel in Indianapolis, IN.

The one-and-a-half day course hosted by Texas A&M University’s Process Engineering Research & Development Center (PERDC) and IOMSA covered topics such as separator application and maintenance, the utilization of expanders on pre-press cake, cooling water best practices, extractor design, smart manufacturing, roller mill monitoring, press design, and dust hazard analysis.

In addition, the class toured Separators Inc., Indianapolis Motor Speedway and Museum, and also attended a Minor League Baseball game between the Indianapolis Indians and Toledo Mud Hens.

For more information and photos from the 86th Oil Mill Operators Short Course, see the upcoming May/June issue of Oil Mill Gazetteer.

For more information on upcoming Texas A&M PERDC short courses, click here.

Zeeland Farm Services Affiliate to purchase Iowa Soybean Facility

An affiliate of Zeeland Farm Services Inc. plans to purchase a soybean facility, soy flour mill, grain elevator, and non-GMO soybean inventories in Creston, IA.

Executives with ZFS Creston LLC, an affiliate of the Zeeland-based agricultural and transportation company, say the acquisition from farming cooperative CHS Inc. places the company in the “rich and storied” agricultural powerhouse of Iowa, Cliff Meeuwsen, president of ZFS Creston, said in a statement this week.

“We are looking forward to getting to know the Creston community, recovering jobs, increasing the opportunities for soybean growers around Creston, and growing the breadth of specialty products for our customers,” Meeuwsen stated.

According to the release, the new facility in Iowa can produce soybean meal, soy white flakes, soy flour and soybean oil.

The company plans to hire new employees for the facility, but didn’t disclose how many jobs would be added or when production will start.

Terms of the deal were not disclosed.

ADM, Cargill Announce Soybean Joint Venture in Egypt

Archer Daniels Midland (ADM) has agreed to form a soybean joint venture in Egypt with fellow U.S. agricultural merchant Cargill to take advantage of strong demand for edible oil and livestock feed.

The agreement will give ADM joint ownership of Cargill’s soy crushing facility in Borg Al-Arab on the Mediterranean coast, the companies said in a statement on Monday.

A source close to the deal had earlier said that the firms would be establishing an oilseed joint venture in Egypt.

Cargill is already in the process of expanding daily crushing capacity at the facility from 3,000 tonnes to 6,000 tonnes, an investment it had estimated at $100 million when it announced the expansion in 2015.

“Egypt is an important market where demand for high-quality soybean meal and oil is outpacing the rest of the world,” John Grossmann, ADM’s president, EMEA oilseeds crush, said in the statement.

The financial terms of the joint venture, which is expected to begin operations in mid-2018 following a regulatory review, were not disclosed.

The joint venture will be managed as a standalone entity, with equal ownership between ADM and Cargill, the groups said.

In addition to the production site, the partnership will also cover related commercial and support activities, including a Switzerland-based merchandising operation for supplying soybeans to the crush plant, the companies said.

The venture will not include Cargill’s grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the port of Alexandria, they said.

A fast-growing population has fueled food demand in Egypt, making the Arab state reliant on imports of crops like wheat, corn and soybeans for human staples like bread and for livestock feed.

The partnership between ADM and Cargill in Egypt comes as global agricultural merchants are reviewing operations after several years of abundant supply and low volatility squeezed profits on buying, selling and shipping crops.

ADM Plans $196 Million Expansion in Clinton, IA

The Archer-Daniels-Midland (ADM) grain processing plant in Clinton will undergo a $196 million modernization and expansion project to increase manufacturing capacity and help the century-old facility remain competitive.

The Chicago-based ADM is planning to update its Clinton wet mill, a facility built in the early 1900s that ADM acquired in 1982, according to documents from the Iowa Economic Development Authority, which approved incentives for the project Friday.

The project will include an investment of $146.5 million in new machinery and equipment as well as a new $39.1 million building expansion. It also includes $2.8 million in site preparation and $7.8 million in other machinery and equipment.

The economic development authority’s board approved $8.257 million in tax credits from its High Quality Jobs program. The project is expected to retain 42 jobs at a qualifying wage of $15.99 per hour.

“ADM is a proud member of the Clinton community, with operations spanning corn processing, grain origination and storage, and river transportation,” ADM spokeswoman Jackie Anderson said. “We are solidifying our presence in Clinton by investing to rebuild our 100-year-old Clinton wet mill.”

She said the mill is part of a corn processing complex that produces a wide range of products, including corn sweeteners and starches, beverage alcohol, corn oil, enzymes, ethanol, animal feed and other food ingredients.

The state assistance includes $7 million in an investment tax credit and $1.257 million in a sales, service and use tax refund.

State documents show ADM had considered closing the plant about 18 years ago because of its physical age and modernization needs. “The corn wet milling process begins at the mill as it separates the corn kernel into its four individual components. Without the mill, none of the other operating departments can operate,” the documents say.

“We appreciate the support of the State of Iowa and the City of Clinton, and we look forward to calling Clinton home of our newest, most modern corn wet mill,” Anderson said.

The plant employs more than 750 people, she added.

The city of Clinton has agreed to match the state award with a tax abatement, but the amount has not been determined.

Andy Sokolovich, the Clinton Regional Development Corp.’s existing industry manager, said the organization is “excited to support ADM” and thankful for the state’s partnership. “A wet-mill is the heart of their production process. As one of our largest employers, we are excited to share in their continued success,” he said.

Work on the modernization project is expected to begin in the first quarter of 2018 and be completed in the first quarter of 2022.

In a statement, Iowa Sen. Rita Hart, D-Wheatland, praised the investment by ADM. “This is good news for Clinton. ADM has been in Clinton since 1982. Modernizing and automating the Clinton facility will help the company remain competitive and, hopefully, add more good jobs down the road.”

Since 2003, ADM has received a total of about $19 million in state incentives for its operations in Clinton and Cedar Rapids. The projects created created a total of 181 jobs.

Register Now for the 86th Annual Oil Mill Operators Short Course, April 8-10, in Indianapolis, IN

Texas A&M University’s Process Engineering Research & Development Center and IOMSA are holding the 86th Annual Oil Mill Operators Short Course, April 8-10, 2018, at The Westin Indianapolis Hotel in Indianapolis, IN.

The one-and-a-half-day course will cover a wide variety of topics relevant to oilseed processing industry professionals.

According to Rich Clough, course organizer, “the goal of the short course is to present the tools and information needed to improve operations by increasing efficiency and optimizing human and plant assets.”

To view the entire schedule and register for the 86th Annual Oil Mill Operators Short Course, go to The cost of the course is $150.

If you have any questions, contact Rich Clough (979-862-2262, or Cyndi Casanova (979-845-2741,

ADM Makes Takeover Approach to Bunge

Archer Daniels Midland Co. (ADM) has made a takeover approach to Bunge Ltd., according to people familiar with the matter, setting up a possible bidding war after Glencore PLC earlier made an overture to the agricultural powerhouse.

Details of the ADM approach are unclear and it’s possible neither company would succeed in buying Bunge, which had a market value of about $9.8 billion as of Friday afternoon. ADM’s valuation was $22.6 billion.

Mining conglomerate Glencore approached White Plains, N.Y.-based Bunge, which ranks among the world’s largest traders and processors of crops like soybeans and corn, The Wall Street Journal reported in May. The two companies have a standstill arrangement that temporarily prevents Glencore from making a hostile bid for Bunge. It’s unclear whether the expression of interest from ADM negates the standstill, which expires in coming weeks, and enables Glencore to make another move now.

ADM and Bunge represent the “A” and “B” in the so-called ABCDs, the global commodity-trading companies that dominate the world-wide flow of basic foodstuffs. Minnesota-based Cargill Inc. and Louis Dreyfus Commodities, headquartered in the Netherlands, are the other two.

A deal with Bunge would represent a strategic shift for Chicago-based ADM, which competes with Bunge in the business of buying, selling and processing crops. While ADM maintains one of the world’s largest agricultural trading networks, the company in recent years has prioritized investing in food ingredients and flavorings, which executives tout as more profitable and more stable than the sometimes-volatile grain industry.

A combination between ADM and Bunge would likely face stiff regulatory hurdles, given the companies’ competing grain facilities, shipping terminals and processing plants.

Glencore’s agricultural division has a smaller presence than ADM’s and Bunge’s in key crop-exporting bread baskets like the U.S. and Brazil, so a Glencore deal could face fewer such hurdles.

A deal could fortify the companies at a time when agricultural traders are struggling. A string of bumper crops in North America, South America and Eastern Europe have swelled stockpiles and pushed down agricultural commodity prices.

Ample supplies mean fewer and smaller price swings, making it harder for grain companies to make profitable trades. Low prices have also left farmers reluctant to sell crops to grain companies, with many instead choosing to stash away crops on their own farms and wait for prices to improve. And food companies that buy raw or semi-processed grain from commodity firms are placing fewer long-term orders, since prices are expected to remain low.

Bunge shares have given back their sharp gain after the Journal reported on Glencore’s approach, as a result of poor earnings.

High Oleic Soybeans Cross Final Regulatory Hurdle

High oleic soybeans have crossed their final regulatory hurdle, clearing the way for farmers to plant more acres of high oleic soybeans in 2018.

“Achieving high oleic global regulatory approval enables us to meet end-user needs with a product they want and increase the use of U.S. soybean oil,” says Lewis Bainbridge, United Soybean Board chair and farmer from Ethan, South Dakota. “We encourage farmers to talk with their seed representatives about high oleic soybean variety options for 2018 planting to help keep pace with growing demand for this high-functioning oil.”

The soy checkoff has invested in research to ensure that high oleic soybeans deliver the qualities required by oil end users. These varieties produce a more stable oil for food industry use in restaurants and packaged goods. The oil also expands uses for non-food applications, such as synthetic motor oil and automotive lubricants.

For farmers, checkoff-supported research has helped ensure that high oleic soybeans perform the same as other soybean varieties and that variety development expanded to a wider range of maturity groups.

“For high oleic soybeans to be successful, we can’t sacrifice performance in the field or limit the geographies where they are grown,” says Bainbridge. “Farmers who plant high oleic soybean varieties consistently report that their high oleic varieties yield as well or better than their other soybean varieties.”

In order for end users to convert to high oleic soybean oil, they need a reliable, consistent supply. The checkoff has been working with industry partners to ramp up acreage of high oleic soybean varieties to meet growing demand. High oleic soybean varieties were initially grown in three states and are now grown in 13 states. Acreage of high oleic soybean varieties has grown from 50,000 acres in 2013 to more than 625,000 acres in 2017.

Given this regulatory milestone, its proven performance and anticipated continued growth in market demand, high oleic soybeans are expected to become the fourth-largest grain and oilseed crop in the U.S., with a goal of planting 18 million acres of high oleic soybeans.

Crush Plant Manager/Superintendent Position Available

Established canola and flaxseed processing business is seeking an experienced oilseed crushing/refining individual to manage a new state of the art full press crush plant and refinery in Great Falls, Montana.  This position seeks a candidate for immediate hire for a plant scheduled for completion in the late summer of 2018. This position will have considerable support from an experienced executive and management team.

Roles and Responsibilities

  • Observe construction of new facility and learn operation from the ground up to commissioning
  • Staff and manage plant
  • Safety and training of staff
  • Overall operations responsibilities
  • Compliance related to the processing plant
  • Ensure optimal operation of the facility
  • Quality control



  • Bachelor’s degree with plant operations
  • Five years in managerial role
  • Five years in a vegetable oil processing plant


  • Competitive according to experience
  • Excellent Benefits Package


Steve Chambers @

Please include a resume and any other pertinent candidate information.

DuPont Pioneer, Perdue AgriBusiness Announce Soybean Program Expansion

DuPont Pioneer and Perdue AgriBusiness recently announced that, in 2018, more farmers will be able to produce Pioneer brand Plenish high-oleic soybeans under contract and be eligible for a grain premium. Participating growers will be able to deliver grain to a participating elevator or directly to designated Perdue facilities for processing.

“Thanks to an expanding market for this improved soybean oil, Perdue is offering more contracted production acres for 2018,” said Gary Cordier, vice president of domestic soy sales for Perdue. “Plenish high-oleic soybeans offer the right combination of higher yield and profit potential for growers and more healthful, functionally superior oil for our food industry.”

Soybean growers who contract to grow Pioneer brand Plenish high-oleic soybeans in the 2018 growing season will receive a 50 cents/bu. incentive for producing and storing the beans or a 40 cents/bu. premium for a harvest delivery contract.

“Since we started working with Perdue in 2013, grower interest in Pioneer brand Plenish high-oleic soybeans has been exceptional,” DuPont Pioneer area lead Cynthia Ericson said. “The varieties we offer for contracting provide the defensive characteristics and high yield potential that area growers need to significantly improve income per acre.”

The development and commercialization of Plenish soybeans illustrates how biotechnology can provide direct benefits to the food industry, consumers and growers, the companies said.

Plenish high-oleic soybean oil provides companies and foodservice operators with a sustainable, U.S.-grown, soy-based trans-fat alternative with 0 g of trans fat per serving and 20% less saturated fat than commodity soybean oil. The improved fatty acid profile provides the highest oxidative stability level of any commercially produced soybean oil. Additionally, the enhanced stability means longer fry life in restaurant applications and less polymerized oil buildup on equipment, which reduces cleaning costs.

The oil’s stability extends the shelf life for packaged food products without sacrificing flavor and eliminates the need for artificial preservatives, creating the opportunity for a cleaner ingredient label.

The exceptional stability of Plenish oil also allows it to be utilized by the chemical industry as a renewable, environmentally friendly alternative to petroleum-based products, the announcement said.

Pioneer brand Plenish high-oleic soybean varieties are being developed with genetics using Pioneer’s Accelerated Yield Technology (AYT) 4.0. Local testing over multiple years has confirmed that yields are on par with similar elite commercial soybean varieties, the company said.

Traits included in Plenish high-oleic soybean products have received regulatory approvals in nearly all key U.S. soybean export markets, and approvals are pending in remaining export markets.