Company: SDSYA
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001163609-25-000032
Chunk: 37

Company: SOUTH DAKOTA SOYBEAN PROCESSORS LLC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 37
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.2 million, or 16.4%, for the nine-month period ended September 30, 2025, compared to the same period in 2024 due a decrease in the average sales price of soybean products and in production. The average soybean meal price declined by 17.9% from 2024 due to an increase in U.S. soybean crushing capacity in 2024. The average price of soybean oil decreased 9.3% during the nine months ended September 30, 2025, compared to the same period in 2024, due to a decrease in demand. Soybean oil demand from the energy sector dropped dramatically in 2024 as refining margins for biodiesel and renewable diesel producers came under intense pressure from overproduction leading to production slowdowns at some locations. In addition, imports of used cooking oil and other feedstocks flooded the market, contributing to an oversupply and adversely affecting soybean oil sales. 

Gross Profit/Loss – Gross profit increased by $1.8 million, or 9.9%, for the nine months ended September 30, 2025, compared to the same period in 2024. The increase was primarily driven by a $5.8 million net gain from derivative activities on previously sold board crush contracts, compared with a loss of $4.8 million for the period ending September 30, 2024. Although gross profit is up compared to the same period in 2024, processing margins —the spread between the market value of soybean meal and soybean oil produced from soybeans and the cost of raw soybeans—declined during the period. The decline primarily reflects a continuation of trends in 2024, characterized by weaker product values for soybean meal and soybean oil.

Operating Expenses – Administrative expenses, including all selling, general and administrative expenses, increased approximately $889,000, or 20.3%, during the nine-month period ended September 30, 2025, compared to the same period in 2024, due to an increase in professional and related costs associated with the start-up of the High Plains Processing plant.

Interest Expense – Interest expense decreased by $1.4 million, or 28.0%, during the nine months ended September 30, 2025, compared to the same period in 2024. The decrease in interest expense was principally due to a decrease in borrowings from our credit facilities (excluding loans by our subsidiary, High Plains Processing), with an average