Ethanol production and inventory levels slipped lower at the end of last week according to the most recent data released from EIA.
Total production slowed 1.2% from the week previous as the recent gains in corn prices are starting to limit some producer interest in growing plant output through the spring months. Total production increased 462,000 gallons per day with a daily output listed at 35.5 million gallons per day.
At the time when production slowed, refiner and blender inputs which can help measure overall demand gained 460,000 gallons per day, which accounts for1.3% growth. It is expected that as the summer driving season approaches, increased demand will be seen, while production may continue to erode, based on firming corn market prices. Total inventory levels fell 2.4% at the end of last week, down 16.8 million gallons, to a total stock level of 697.2 million gallons of ethanol on hand.
Rick Kment can be reached at email@example.com
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