Carl Plum

(Reuters) – Cargill Corp has agreed to acquire soybean processor and refiner Owensboro Grain Company in a deal that will expand its oilseed processing capacity to meet growing demand for food, feed and biofuels, an agricultural commodity trader said on Monday.

The purchase includes a soybean processing plant and a Kentucky refinery.

The facility can load and unload trucks, railcars and river barges bound for U.S. Gulf Coast refineries and export terminals.

Owensboro Grain has the capacity to process 39.5 million bushels of soybeans annually into vegetable oil and soybean meal.

The acquisition comes amid growing demand for vegetable oils for the production of renewable grade diesel and increased exports of soybean meal.

The transaction is expected to close in early 2023, subject to regulatory approval. The companies do not disclose the terms of the agreement.

(Karl Plum, Chicago)