(Bloomberg) -- Archer-Daniels-Midland Co. will close its only soybean crushing facility in Iowa for several weeks at a time when farmers are harvesting a record crop.
ADM’s processing plant in Des Moines will be “down for planned essential maintenance from mid-October through November,” the company said in response to questions sent by email.
The move will curb demand for soybeans — while also limiting ADM’s ability to profit from processing it into meal and oil — as harvesting of the oilseed used in everything from animal feed quickly advances in the Midwest. Iowa farmers have already collected more than 27% of their crop this year, according to the latest data from the US Department of Agriculture.
The ADM facility has capacity to crush nearly 5 million bushels (135,000 metric tons) of soybeans a month, making it the third largest in the US, according to an estimate by agricultural consultant Gordon Denny.
The US is poised to harvest a record 124.8 million metric tons of soybeans in the season started in September, according to the USDA.
ADM said it has “plans in place to ensure we can meet customer needs throughout this timeframe utilizing our vast transportation, origination and processing network.”
Reuters earlier reported on the plant shutdown.
--With assistance from Tarso Veloso.
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