WASHINGTON, D.C. (RFD News) — U.S. ethanol production pulled back last week while inventories climbed again, creating a mixed demand signal for corn growers. Energy Information Administration data show output fell about 3% to a five-week low of 1.09 million barrels per day.
Production still remained about 2% above last year and 6% above the five-year average. The four-week average held near 1.11 million barrels per day, equivalent to roughly 17.1 billion gallons annually.
Inventories increased about 1% to 25.1 million barrels, the highest weekly level since early May. Stocks are running roughly 11% above both last year and the five-year average.
Gasoline demand weakened more sharply, falling about 3% to an 11-week low. However, ethanol inputs from refiners and blenders improved by about 1%, while exports increased by roughly 18% to 129,000 barrels per day.
For corn producers, ethanol production remains historically strong, but rising inventories and softer gasoline demand could limit additional demand growth unless exports and domestic blending strengthen.
