NASHVILLE, Tenn. (RFD-TV) — U.S. ethanol production surged to a new record as stronger fuel demand and exports tightened inventories, offering supportive signals for corn demand. According to the Renewable Fuels Association, output for the week ending December 12 rose 2.4 percent to 1.13 million barrels per day, the highest level ever recorded.
Production ran 2.5 percent above the same week last year and nearly 6 percent above the three-year average. The four-week average also climbed, pushing the annualized production pace to about 17.2 billion gallons. At the same time, ethanol stocks declined modestly to 22.4 million barrels, falling below both year-ago levels and the three-year average, with inventories thinning in most regions.
Fuel demand showed notable improvement. Gasoline supplied to the market jumped more than 7 percent to a 15-week high, while refiner and blender ethanol use rose to a seven-week high. Export demand strengthened sharply, with weekly shipments climbing more than 50 percent to the strongest level since August.
Farm-Level Takeaway: Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
Tony St. James, RFD-TV Markets Specialist
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