NASHVILLE, TN – U.S. ethanol production increased to a four-week high last week, but weaker gasoline demand and rising inventories could limit near-term support for corn and ethanol markets.
The Renewable Fuels Association says Energy Information Administration data show output rose 1.1% to 1.07 million barrels per day, equal to 44.73 million gallons daily. The four-week average slipped to 1.04 million barrels per day, an annualized 15.96 billion gallons.
Ethanol stocks increased 0.8% to 23.9 million barrels, 5.8% above a year ago and 10.9% above the five-year average. Inventories rose in every region except the Midwest and West Coast.
Gasoline supplied fell 4.1% to 8.41 million barrels per day, the lowest level since late February. Ethanol blender inputs edged up to 899,000 barrels per day, while exports dropped 27.1% to a six-week low of 121,000 barrels per day.
EIA says national gasoline averaged $4.33 per gallon and diesel $6.18 during the week, both slightly lower than the previous week.
Farm-Level Takeaway: Higher ethanol production supports corn demand, but rising stocks and weaker gasoline use could pressure near-term ethanol margins.