Spot ethanol prices extended higher in early trade Thursday, with the gains continuing to be driven by data released yesterday showing a steep decline in weekly U.S. ethanol production, trade sources said.
The Energy Information Administration reported ethanol production down 22,000 bpd for the week-ended Jan. 25, off more than 100,000 bpd from the year prior period.
Four-week average ethanol production was 793,000 bpd, also down more than 100,000 bpd from the four-week average a year ago.
A combination of lower corn supplies, higher corn prices for ethanol producers, and weaker gasoline demand contributed to U.S. ethanol output falling from an average 900,000 bpd during the first half of 2012 to an average of 815,000 bpd in the second half, about 90,000 bpd less than in the second half of 2011, added EIA.
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