An improved dry grind system and method for producing a sugar stream from grains or similar carbohydrate sources and/or residues, such as for biochemical production, with front end oil separation. Prior to or after saccharification, oil can be removed from a sugar/carbohydrate stream. After saccharification and prior to a sugar conversion process, the sugar/carbohydrate stream includes a desired Dextrose Equivalent (DE) where DE describes the degree of conversion of starch to dextrose can be produced, with such sugar stream being available for biochemical production, e.g., alcohol production, or other processes. In addition, the systems and methods also can involve the removal of certain grain components, e.g., corn kernel components, including protein and/or fiber. In other words, oil separation and sugar stream production occurs on the front end of the system and method.