Ethanol Output Slips as Inventories Build Higher

US ethanol production declined by about 3% last week, reaching its lowest level in five weeks at 1.09 million barrels per day.

According to Energy Information Administration data, this decrease is concerning as it may limit additional demand growth for corn growers unless exports and domestic blending strengthen.

On a more positive note, ethanol production remains about 2% above last year's levels and 6% above the five-year average.

Rising inventories, however, pose a challenge to ethanol producers, with stocks increasing by about 1% to 25.1 million barrels, the highest weekly level since early May.