NASHVILLE, TN – U.S. ethanol production declined last week while demand softened, even as exports and blending activity showed signs of strength. Data from the Energy Information Administration shows production dropped 3.7% to 1.08 million barrels per day, the lowest weekly output since January.
Despite the weekly decline, production remained 1.1% higher than a year ago and above the three-year average. The four-week average also slipped slightly to 1.10 million barrels per day, reflecting a modest pullback in overall output levels.
Ethanol inventories tightened, falling 4.3% to 26.0 million barrels, with stock declines reported across nearly all regions. At the same time, gasoline demand — a key indicator for ethanol use — dropped 2.7% to a four-week low, though it remained above year-ago levels.
Refiner and blender inputs increased 1.6% to a 14-week high, signaling continued strength in blending. Ethanol exports also rose 3.4%, extending a trend of solid international demand.
Farm-Level Takeaway: Lower production and stocks may support ethanol prices.