Why Is Soybean Oil Inventory Piling Up? USDA November Data Reveals Crushing Decline

According to Golden Ten Data Futures reporting on January 3, the latest USDA monthly oilseed report presents a mixed picture for U.S. soybean markets. The most striking takeaway: soybean oil stocks have surged to 1.697 billion pounds—a sharp 25% month-on-month spike that signals potential oversupply pressures.

Crushing Volume Drops Sharply

The core issue driving this buildup is the declining crush activity. November 2025 saw U.S. soybean crushing fall to 6.62 million tons (221 million bushels), marking a notable retreat from October’s 7.09 million tons (236 million bushels). This drop in crushing directly translates to slower processing and the subsequent accumulation of soybean oil in inventories.

Inventory Buildup Across the Board

Beyond soybean oil, the storage picture extends beyond just one product. Soybean meal inventories have similarly posted growth, compounding supply concerns across the soybean crush complex. The combination of reduced processing demand and mounting inventories suggests traders should monitor for potential price pressures ahead.

Bright Spots in the Report

Not all segments retreated. Rapeseed crush volume rebounded month-on-month, while animal fat production also posted gains, indicating selective strength in oilseed complex processing. These gains, however, haven’t been enough to offset the soybean sector’s softening momentum.

The divergence between soybean and other oilseeds underscores ongoing market segmentation, with soybean oil facing particular headwinds from both reduced crush demand and ballooning stocks.