Fats & Oils

USDA’s September Fats & Oils data show a sharp month-to-month slowdown in soybean processing alongside materially lower oil inventories, tightening the reported supply pipeline for commercial buyers. Soybeans crushed fell to 5.96 million tons (199 million bushels), from 6.29 million tons (210 million bushels) in August and 6.15 million tons (205 million bushels) a year earlier; crude soybean oil production dropped to 2.31 billion pounds, down 6% from August and 4% from September 2025, while once-refined output fell to 1.91 billion pounds, down 5% and 2%, respectively. Crude soybean oil stocks declined to 1.069 billion pounds from 1.279 billion in August, and once-refined stocks fell to 388.8 million pounds from 417.3 million. Refined oil removed for processing also eased to 1.929 billion pounds, including 1.223 billion for edible use. Canola provided a partial offset, with crush rising to 238,790 tons from 229,809 in August, although once-refined production slipped to 172.3 million pounds and refined stocks stood at 113.1 million pounds. Cottonseed refined oil production plunged 53% month to month to 10.4 million pounds. In animal fats, choice white grease production reached 110.2 million pounds, while inedible tallow production was 289.8 million and technical tallow 89.0 million pounds.