NASHVILLE, TN – U.S. ethanol production remained historically strong in early November even as gasoline demand weakened, according to Energy Information Administration (EIA).
Production averaged 1.13 million barrels per day during the week ending November 6, down 1.1% from the previous week but 5.1% above a year earlier. The four-week average reached 1.12 million barrels daily, equivalent to an annualized 17.18 billion gallons.
Ethanol inventories declined slightly to 24.3 million barrels but remained 9.6% above last year and 14.2% above the five-year average. Refiner and blender ethanol inputs fell 1.2% to a 30-week low of 888,000 barrels per day.
Gasoline supplied to the U.S. market slipped 0.5% to 8.77 million barrels per day, 2.9% below last year. Ethanol exports also declined 4.8% to 140,000 barrels daily.
Producers will be watching whether strong ethanol output can be sustained if domestic gasoline consumption remains soft and inventories stay historically elevated.
Farm-Level Takeaway: Strong ethanol production continues supporting corn demand, but weaker gasoline consumption and elevated inventories could limit additional growth.