WASHINGTON, DC – U.S. ethanol production pulled back last week while inventories climbed again, creating a mixed demand signal for corn growers. Energy Information Administration data show output fell about 3% to a five-week low of 1.09 million barrels per day.
Production still remained about 2% above last year and 6% above the five-year average. The four-week average held near 1.11 million barrels per day, equivalent to roughly 17.1 billion gallons annually.
Inventories increased about 1% to 25.1 million barrels, the highest weekly level since early May. Stocks are running roughly 11% above both last year and the five-year average.
Gasoline demand weakened more sharply, falling about 3% to an 11-week low. However, ethanol inputs from refiners and blenders improved by about 1%, while exports increased by roughly 18% to 129,000 barrels per day.
For corn producers, ethanol production remains historically strong, but rising inventories and softer gasoline demand could limit additional demand growth unless exports and domestic blending strengthen.
Farm-Level Takeaway: Strong ethanol output continues supporting corn demand, but rising stocks and weaker gasoline use remain important warning signs.