WASHINGTON, DC – U.S. ethanol production climbed to its highest weekly level since early January, strengthening corn demand as plants increased output during the final week of October.
Renewable Fuels Association analysis of Energy Information Administration data shows production rose 2.2 percent to 1.14 million barrels per day, equal to 48.01 million gallons daily. Output was 1.8 percent above a year earlier and 6.6 percent above the five-year average.
Ethanol inventories slipped 0.4 percent to 24.4 million barrels but remained 7.9 percent above last year and 13 percent above the five-year average. Stocks declined in every region except the East Coast.
Gasoline demand increased 5.4 percent to 8.81 million barrels per day, while ethanol exports jumped 26.7 percent to a four-week high of 147,000 barrels per day. Refiner and blender ethanol inputs declined slightly to 899,000 barrels per day.
Strong production and export activity provide continued demand support for corn, although elevated ethanol inventories and gasoline consumption below the five-year average remain important market factors.
Farm-Level Takeaway: Strong ethanol production and rising exports continue supporting corn demand heading into the winter marketing period.