Ethanol production up as supply shrinks
U.S. ethanol production continues to rebound, even as it remains well below peak levels. The U.S. Energy Information Administration says production last week averaged 724,000 barrels a day, up 61,000 on the week, but down 333,000 on the year. COVID-19 related stay at home and social distancing orders are relaxing in parts of the U.S., but continue to be in place in other parts of the country, and while the volume of gasoline supplied to the market and net inputs for ethanol blenders and refiners are also trending higher, both remain sharply lower than a year ago.
Stocks hit a 19-week low, declining 450,000 barrels from the week before to 23.176 million, still 552,000 above last year’s levels.
The USDA’s next corn for ethanol use estimate is out June 11th.