July 30 (Reuters) - Grain trader Archer-Daniels-Midland said on Thursday it will upgrade four U.S. oilseed crushing facilities to expand North American processing capacity, as strong demand for renewable fuels drives growth in vegetable oil markets.
The company expects projects in Frankfort, Indiana, Deerfield, Missouri, Lincoln, Nebraska and Spiritwood, North Dakota, to be completed between mid-2028 and early 2029, expanding processing capacity by 700,000 metric tons annually. The expansion reflects a 1% increase in the total U.S. soybean crush last year, according to U.S. Department of Agriculture data.
Capacity gains, earnings outlook and industry backdrop
ADM's upgrades will include storage additions, equipment improvements and operational changes intended to increase throughput at the four facilities.
The expansion would create demand for more than 25 million additional bushels of U.S.-grown oilseeds annually, the company said. U.S. soybean processors crushed more than 2.5 billion bushels of soybeans in 2025, a 7.4% jump from the prior year, according to the USDA.
ADM, which did not disclose financial details of the investments, said it is evaluating similar upgrades at other North American crushing facilities.
In May, the company raised its full-year profit forecast citing a strong oilseed processing outlook and clarity on U.S. biofuel blending mandates. ADM is scheduled to report second-quarter results on Tuesday.
Soybean crushing has bolstered profits at ADM and rival agribusinesses including Bunge Global in recent quarters, helping offset pressures from rising energy costs and global shipping disruptions due to wars and tariff battles.
Bunge, the world's largest oilseed processor, reported on Wednesday a second-quarter earnings beat and raised its 2026 outlook on strong soy and softseed processing results.
Biofuel demand is lifting soybean oil and oilseed demand
U.S. demand for soybean oil and other vegetable oils has been rising as producers ramp up renewable diesel and sustainable aviation fuel capacity. In March, President Donald Trump's administration ordered refiners to blend a record amount of biofuels into gasoline and diesel in 2026 and 2027.
Soybean oil is a key feedstock for renewable fuels, alongside other sources such as used cooking oil and animal fats.
“Strong demand — supported by biofuels policy in the U.S. — is driving opportunities for farmers and the broader American agricultural sector," said Gary McGuigan, president of ADM’s North America ag services and oilseeds business.
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