Between eight and 10 Brazilian soybean processors have temporarily halted operations as crushing margins turned negative, reflecting weak domestic demand for biodiesel and high vegetable oil inventories at production sites, Reuters reported, citing to two analysts.
Abiove, a trade group representing global oilseed crushers in Brazil, confirmed the move, telling Reuters some of its members advanced scheduled maintenance stoppages that traditionally happen at the end of the year as soyoil prices dropped while soybean prices remained high, hurting margins.
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Abiove’s chief economist says the group may revise its Brazilian soy crush forecast as new processing data becomes available.
