Ethanol Production Rises Amid Favorable Margins and Demand Expectations

U.S. ethanol production rose slightly last week to an average of 1.117 million barrels per day, according to the U.S. Energy Information Administration (EIA).

This represents a 10,000-barrel-per-day increase from the previous week and a 24,000-barrel-per-day gain compared to the same period last year.

The boost in production is attributed to favorable margins and demand expectations, which have contributed to a rise in domestic corn usage.

Ethanol stocks reached an 11-week high at 24.798 million barrels, marking a 274,000-barrel increase from the previous week and a 2.149 million-barrel gain compared to last year.

The Renewable Fuels Association notes that net inputs of ethanol purchased by refiners and blenders fell to a four-week low, while gasoline supplied to the market was slightly lower.