US Soybean Crush Stays Strong as Ethanol Production Surges

The US soybean crush in July was stronger than expected, according to the USDA. Soybean processors crushed 222 million bushels of soybeans during the month, which is 4 million bushels higher than June and 17 million bushels above the same period last year.

This sustained strength in crush activity reflects expanding domestic use of soybean products, with producers working to meet anticipated demand. However, the elevated pace of production pushed soybean oil stocks above analysts' forecasts, while soybean meal inventories also exceeded year-earlier levels.

Corn demand from the ethanol sector also remained strong in July, with 474.741 million bushels of corn used for ethanol production. This represents a 2% increase on the month and a 4% rise compared to July last year, highlighting the significant share that ethanol manufacturing accounts for in total US corn use.