News

Ethanol supply gets tighter

The U.S. ethanol supply contracted again last week and is now at its’ lowest level for the year.

The U.S. Energy Information Administration says domestic ethanol stocks were 21.034 million barrels, down 312,000 from the previous week and 533,000 less than this time last year.

That tightness is because of lower production levels caused plant slowdowns and closures, along with increased blending demand as the summer driving season starts and states continue to relax COVID-19 related restrictions.

Production averaged 893,000 barrels a day, a week to week increase of 53,000 barrels, but 179,000 below a year ago.

The USDA’s next corn for ethanol use estimate is out July 10th.