The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) released two significant reports on November 1, 2024, detailing trends in grain crushings and production of fats and oils. The findings reflect both challenges and shifts within the agricultural sector.
Oilseed crushings overview
In the Fats and Oils report, September 2024 saw soybeans crushed for crude oil totaling 5.60 million tons (or 187 million bushels), up from 5.03 million tons in August 2024 and 5.24 million tons a year earlier. This increase aligns with a rise in crude oil production to 2.22 billion pounds, a 12 percent increase from August and a 7 percent increase compared to September 2023. The production of refined soybean oil was reported at 1.76 billion pounds, reflecting a 5 percent month-over-month increase.
Canola seed crushings also indicated a slight uptick, with 204,907 tons crushed in September, compared to 198,572 tons in August. However, canola crude oil production saw a slight decline, landing at 161 million pounds.
Corn usage and co-products
The Grain Crushings and Co-Products Production report highlighted total corn consumption for alcohol and other uses at 490 million bushels in September 2024. This represents an 8 percent decrease from August 2024, but a 3 percent increase compared to September 2023. Notably, 91.9 percent of this corn was allocated for alcohol production, with the remaining 8.1 percent designated for other uses.
Corn used for beverage alcohol amounted to 3.51 million bushels, down 10 percent from August and significantly down 35 percent from the previous year. Conversely, corn for fuel alcohol remained robust at 440 million bushels, consistent with the previous year's numbers despite an 8 percent decrease from August.
Production of dry milling co-products saw a decline, with distillers dried grains with solubles (DDGS) totaling 1.80 million tons, down 10 percent from August but up 4 percent from September 2023. In contrast, distillers wet grains (DWG), at 1.15 million tons, decreased 6 percent from August and 12 percent from the previous year.
Additionally, the report noted that wet mill corn gluten feed production reached 273,303 tons in September, a 6 percent drop from August but an 11 percent increase year-over-year.
Implications for agriculture
These reports collectively illustrate the ongoing adjustments within the agricultural industry in response to market dynamics and production demands. The increase in soybean processing capacity and the overall stability in corn usage for fuel alcohol suggest resilience in certain sectors, while the declines in specific co-product productions highlight the challenges faced by farmers and producers.
The USDA’s findings provide critical insights for stakeholders across the agricultural landscape, informing decisions related to crop management, resource allocation, and market strategies as the industry navigates the complexities of supply and demand in the current economic climate.
