Ethanol production rises, inventories decline, demand signals mixed
U.S. ethanol production rose last week.
The U.S. Energy Information Administration said production averaged 989,000 barrels a day, up 19,000 for the week and 69,000 for the year.
Some manufacturers are still torn between keeping production high to take advantage of margins and cutting back due to seasonal maintenance and long-term demand uncertainty.
The Renewable Fuels Association said two key demand indicators were mixed: Net gasoline volumes by refiners and blenders fell slightly to a six-week low but held above a five-year average, while gasoline volumes delivered to the market increased by 1.6% from the previous week, but remained well below the average pace.
U.S. ethanol inventories fell 395,000 barrels to 23.138 million, the lowest domestic inventory since June, still 2.748 million more than this time last year.
The next USDA corn ethanol use estimate will be released Monday, September 12 at noon EST/11 AM EST.