NASHVILLE, TENN. (RFD News) — U.S. ethanol production fell to its lowest weekly level since early May, tightening the pace of corn use while inventories continued to build. The slowdown adds pressure to margins if weaker output is not matched by stronger fuel demand or exports.
The Energy Information Administration says production dropped 4.8 percent to 1.04 million barrels per day during the week ending July 10. That equals 43.68 million gallons daily. Output was 4.3 percent below last year and 2.3 percent under the five-year average.
The four-week production average declined to 1.09 million barrels per day, an annualized pace of 16.68 billion gallons. Ethanol stocks rose 1.9 percent to 24.4 million barrels, with inventories increasing in most regions.
Gasoline supplied eased to 8.84 million barrels per day but remained above both year-ago and five-year levels. Ethanol blender inputs increased slightly to 906,000 barrels per day, supporting domestic demand.
Exports fell 59.5 percent to 81,000 barrels per day, the lowest level in 13 weeks. Producers will watch whether stronger summer fuel use can reduce stocks and support a rebound in output.
