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Soybean crushing surges 6.5%, ethanol production dips 2% in USDA reports

Oilseed crushing showing strong growth while corn use for ethanol faces challenges.

Corn Pile Closeup

The United States Department of Agriculture's National Agricultural Statistics Service (NASS) has released a series of reports detailing the performance of key agricultural processing sectors for December 2024 and the fourth quarter of the year. The reports, covering oilseed crushing, grain crushing, and flour milling, reveal significant trends in the industry:

Oilseed crushing gains:

  • Soybean crushing reached 6.53 million tons in December 2024, a 6.5% increase from December 2023.
  • Crude soybean oil production rose to 2.57 billion pounds, an 8% jump from the previous year.
  • Canola seed crushing increased by 16.7% year-over-year to 225,039 tons in December 2024.

Ethanol production challenges:

  • Corn used for fuel alcohol production totaled 473 million bushels, a 2% decrease from December 2023.
  • Total corn consumed for alcohol and other uses reached 521 million bushels, down 2% year-over-year.

Flour milling stability:

  • All wheat ground for flour in Q4 2024 totaled 231 million bushels, up 2% from Q4 2023.
  • Total flour production reached 107 million hundredweight, a 2% increase year-over-year.

Oilseed crushing gains momentum

    The Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks report highlights significant increases in soybean and canola processing:

                                                      • Soybean crushing reached 6.53 million tons (218 million bushels) in December 2024, up from 6.30 million tons in November and 6.13 million tons in December 2023.
                                                      • Crude soybean oil production rose to 2.57 billion pounds, marking a 3% increase from November and an 8% jump from the previous year.
                                                      • Refined soybean oil production hit 1.92 billion pounds, up 5% month-over-month and 12% year-over-year.
                                                      • Canola seed crushing also saw gains, with 225,039 tons processed in December 2024, compared to 211,013 tons in November and 192,796 tons in December 2023.
                                                      • Canola crude oil production increased by 5% from November and 13% from the previous year, reaching 175 million pounds.

                                                      These figures suggest a robust demand for vegetable oils, potentially driven by increased food manufacturing and renewable fuel production. The growth in soybean and canola processing is particularly noteworthy, as it indicates a strong market for these crops and their derivatives.

                                                      However, not all sectors of the fats and oils industry saw growth:

                                                      • Cottonseed refined oil production declined by 26% from November and 5% year-over-year, totaling 30.3 million pounds in December 2024.
                                                      • Edible tallow production fell by 6% month-over-month and 11% year-over-year to 75.6 million pounds.
                                                      • Inedible tallow and technical tallow production also decreased, with inedible tallow down 6% from November and 9% from the previous year, while technical tallow dropped 14% month-over-month and 5% year-over-year.

                                                      Grain Crushing: Ethanol Production Faces Headwinds

                                                      The Grain Crushings and Co-Products Production report reveals a slight decline in corn consumption for ethanol production:

                                                      • Total corn consumed for alcohol and other uses reached 521 million bushels in December 2024, up marginally from November but down 2% from December 2023.
                                                      • Corn used for fuel alcohol production totaled 473 million bushels, a slight increase from November but a 2% decrease from the previous year.
                                                      • Beverage alcohol production saw a more significant decline, with corn consumption down 18% from November and 16% from December 2023.

                                                      The report also provides insights into co-product production:

                                                      • Distillers dried grains with solubles (DDGS) production increased 2% from November to 1.88 million tons but remained 4% below December 2023 levels.
                                                      • Distillers wet grains (DWG) production rose 3% month-over-month to 1.29 million tons but was 8% lower than the previous year.
                                                      • Wet mill corn gluten feed production showed mixed results, with a 1% decrease from November but a 4% increase from December 2023, totaling 256,980 tons.

                                                      These figures suggest that while ethanol production remains a significant driver of corn demand, the industry may be facing challenges such as fluctuating fuel prices or changing policy landscapes.

                                                      Flour Milling Sector Demonstrates Stability

                                                      The Flour Milling Products report indicates a relatively stable performance in the wheat milling sector for the fourth quarter of 2024:

                                                      • All wheat ground for flour totaled 231 million bushels, down 1% from the third quarter but up 2% from the fourth quarter of 2023.
                                                      • Total flour production reached 107 million hundredweight, showing a slight decrease from the previous quarter but a 2% increase year-over-year.
                                                      • Whole wheat flour production accounted for 4% of total flour production at 4.55 million hundredweight.
                                                      • Durum wheat grinding for flour and semolina increased 5% from the third quarter and 1% year-over-year, totaling 17.1 million bushels.
                                                      • Rye grinding for flour decreased 4% quarter-over-quarter and 15% year-over-year to 332,000 bushels.

                                                      The milling industry's daily 24-hour capacity remained substantial:

                                                      • Wheat flour milling capacity stood at 1.60 million hundredweight.
                                                      • Durum and semolina production capacity was 134,730 hundredweight.
                                                      • Rye milling capacity was 9,655 hundredweight.

                                                      These figures suggest that the flour milling sector is maintaining steady production levels, with slight increases in overall wheat and durum processing compared to the previous year. The decline in rye milling may indicate shifting consumer preferences or market dynamics specific to that grain.

                                                      Industry implications and outlook

                                                      The combined data from these USDA reports paints a complex picture of the U.S. agricultural processing sector. While oilseed crushing, particularly for soybeans and canola, shows strong growth, the ethanol industry appears to be facing some headwinds. The flour milling sector demonstrates resilience with steady production levels.

                                                      These trends have several potential implications for the industry:

                                                      • Increased demand for vegetable oils may lead to expanded acreage for soybeans and canola in the coming planting seasons.
                                                      • The ethanol industry may need to navigate changing market conditions, potentially exploring new uses for corn or diversifying into other biofuel feedstocks.
                                                      • Stable flour production suggests consistent demand from food manufacturers and consumers, but processors may need to stay attuned to changing dietary preferences, such as the demand for whole grain products.


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