Ethanol and soybean crushing strengthen domestic demand for US corn and soybeans

Domestic demand for corn and soybeans in the United States remains strong, supported by active ethanol production and soybean crushing. According to USDA, corn use for alcohol and other purposes totaled 528 mln bushels in August, up 4% y/y.

Fuel ethanol production consumed 478 mln bushels of corn during the month, also up 4% from a year earlier. Compared with July, however, total corn use for processing declined by less than 1%.

Soybean crush reached 210 mln bushels in August, up from 198 mln bushels a year earlier, an increase of around 6% y/y. Compared with July, when processors crushed 222 mln bushels, volumes declined moderately.

Crude soybean oil production totaled 2.45 bln pounds in August. Strong crushing volumes continue to support domestic soybean demand, including from the food and biofuel sectors.

Corn processing also generated 1.85 mln tons of DDGS and 1.28 mln tons of other distillers feed products, up 5% y/y. Overall, the ethanol and soybean processing sectors continue to provide significant domestic demand for major US crops as new-crop supplies enter the market.

Tags: corn, soybean, USA, ethanol