Ethanol production slides lower, supply up modestly
U.S. ethanol production declined last week, while stocks moved slightly higher.
The U.S. Energy Information Administration says ethanol production averaged 931,000 a day, down 27,000 on the week and 109,000 below a year ago because of tighter margins and continued concerns about demand caused by COVID-19.
Blending demand and the amount of gasoline supplied to the market were also below the previous week’s levels.
Stocks were up 74,000 barrels at 20.346 million, which is about 2.771 million lower than last year.
According to the Renewable Fuels Association, exports during June were 78.5 million gallons, up 16% from May, mainly to Canada, India, and Mexico, while cane ethanol imports from Brazil were 10.5 million gallons, the first reported imports since March. DDGS sales of 883,193 tons were an increase of 47% on the month, with Thailand buying about a quarter of the total.
The USDA’s next corn for ethanol use estimate is out on the 12th.