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U.S. ethanol production, stocks down on week

U.S. ethanol production and stocks declined last week.

The U.S. Energy Information Administration says production averaged 918,000 barrels a day, that is 13,000 barrels less than the previous week and 127,000 under a year ago, and the second week in a row with a decline because of margins and concerns about blending demand because of COVID-19. Blending demand did increase on the week, but also remains well below year ago levels.

The supply of 19.75 million barrels was down 596,000 barrels on the week and more than 4.133 million on the year, the tightest domestic stocks since the end of 2016.

The USDA expects 4.85 billion bushels of corn to be used for ethanol production this marketing year, rising to 5.2 billion next marketing year, which starts September 1st.