U.S. oilseed processors and corn ethanol facilities expanded operations in March, with soybean crushing reaching 6.82 million tons and fuel alcohol production consuming 474 million bushels of corn, according to data released May 1 by the National Agricultural Statistics Service. The increases reflect growing demand across vegetable oil and biofuel sectors, though some segments including cottonseed oil and tallow production experienced declines from both the previous month and year-ago levels.
Soybean processing reaches new highs
Soybean crushing operations processed 6.82 million tons in March 2026, marking a substantial increase from February’s 6.43 million tons and surpassing March 2025 levels by 620,000 tons. The expanded crushing activity generated 2.64 billion pounds of crude oil, representing a 6 percent monthly increase and 7 percent year-over-year growth.
Refined soybean oil production showed even stronger momentum, reaching 2.00 billion pounds during March. This output reflected a notable 14 percent jump from February and maintained a 7 percent advantage over the previous year’s March figures.
Canola operations show strong momentum
Canola seed crushing demonstrated robust growth, with facilities processing 225,183 tons in March compared to 185,326 tons in February. The March 2026 volume also exceeded March 2025 levels by more than 24,000 tons.
Canola crude oil production climbed to 180 million pounds, up 18 percent from February and 13 percent higher than the previous year. Refined canola oil output reached 177 million pounds, posting a 24 percent monthly increase and 3 percent annual gain.
Mixed results across other oil categories
Cottonseed refined oil production declined to 22.8 million pounds, dropping 6 percent from February and falling 28 percent below March 2025 levels. The tallow sector experienced widespread decreases across all categories.
Edible tallow production fell sharply to 69.7 million pounds, down 44 percent from February and 13 percent from the previous year. Inedible tallow output reached 293 million pounds, declining 16 percent monthly and 13 percent annually. Technical tallow production dropped to 101 million pounds, showing 20 percent decreases both monthly and yearly.
Choice white grease bucked the downward trend slightly, with production at 107 million pounds representing just a 2 percent monthly decline while maintaining an 8 percent annual increase.
Corn consumption drives ethanol sector
Total corn consumption for alcohol and other industrial uses reached 523 million bushels in March, climbing 10 percent from February and 4 percent from March 2025. Alcohol production dominated usage patterns, accounting for 92.5 percent of total consumption.
Fuel alcohol production consumed 474 million bushels, up 10 percent monthly and 5 percent annually. Beverage alcohol operations used 3.65 million bushels, showing a 13 percent monthly increase despite a 13 percent year-over-year decline.
Co-product output reflects processing gains
Dry mill operations produced 1.79 million tons of distillers dried grains with solubles, increasing 10 percent from February while remaining 1 percent below March 2025 levels. Distillers wet grains production reached 1.33 million tons, up 11 percent monthly and 8 percent annually.
Wet mill corn gluten feed production totaled 268,470 tons, gaining 11 percent from February and 3 percent from the previous year. The 40 to 60 percent moisture variant reached 191,594 tons, up 13 percent monthly but down 3 percent annually.
The National Agricultural Statistics Service released both reports May 1, covering March 2026 processing activities across the grain and oilseed sectors.
