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Soy Diesel Profitability
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plowboy
Posted 10/27/2006 17:30 (#55774 - in reply to #55763)
Subject: Re: Soy Diesel Profitability



Brazilton KS
I'm not sure that number is accurate, but I'm also not sure that it's not. The plant under construction in my area is listed as 30,000,000 gallon per year biodiesel production and 21,000,000 bushel soybean crush plant, so they are expecting about a gallon and a half per bushel.

The remaining products are soybean meal and glycerin.

Soybean meal is a major protein source.

You probably know more about glycerin then I do.

The soybeans are almost certain to be crushed for soybean meal and soyoil regardless of biodiesel production. The value of these two products minus the cost of crushing them is basically what beans trade for in a 'normal' market condition. When there is good meal demand, the oil can be a drag on the process, but biodiesel will probably eliminate that situation. I would not be surprised to see the soymeal be the drag at times in the future, especially in areas which have destroyed their animal production capacity.
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