News
Ethanol production down for the first time since April
U.S. ethanol production moved lower last week and stocks got tighter.
The U.S. Energy Information Administration says production averaged 908,000 barrels a day, down 23,000 on the week, the first week to week decline since April, because of lower ethanol prices and signs summer gas demand might have peaked as COVID-19 cases continue to rise in parts of the U.S. That is 131,000 barrels below a year ago.
The amount of gasoline supplied to the market was down for the second week in a row and while blending demand did improve, it remains well below a year ago.
The domestic ethanol supply shrank by 807,000 barrels to 19.801 million barrels, the first time stocks have dipped below 20 million barrels since the end of 2016. This time last year, stocks were 23.689 million barrels.
The USDA’s next corn for ethanol use estimate is out August 12th.
