WASHINGTON, D.C (RFD News) — U.S. ethanol production climbed to its second-highest level on record, strengthening corn demand while increasing fuel and export transportation needs. Energy Information Administration data shows output reached 1.13 million barrels daily during the week ending July 24, up 3.6 percent.
Daily production equaled 47.59 million gallons and stood 3.4 percent above last year. The four-week average reached 1.09 million barrels daily, equal to an annualized 16.76 billion gallons.
Ethanol stocks rose 1 percent to 24.7 million barrels, the highest in nine weeks. Inventories increased across most regions, potentially adding pressure on storage, rail, truck, barge, and terminal capacity.
Exports fell 13.3 percent to 137,000 barrels daily, or 5.8 million gallons. Gasoline supplied increased to 9.04 million barrels daily but remained below both last year and the five-year average.
Producers will watch whether strong output continues supporting corn basis and plant bids. Export recovery and domestic blending demand will determine how quickly rising inventories move through transportation networks.
