Ethanol production continues to advance higher with overall ethanol production increasing 1.6% over the previous week. Total production averaged 38.2 million gallons per day for the week ending last Friday.
This is an increase of 588,000 gallons per day over week-ago levels. Ethanol production has been increasing over the last four weeks. Stability in corn prices during October created additional confidence that ethanol production may have a chance to see additional growth through the upcoming weeks and months.
But even with current plant margins remaining strong, a large influx of production is not expected to be seen over the short or long term. Ethanol prices remain weak, given lack of additional demand beyond normal blending rates.
That being said, overall blender demand has remained strong through the fall, leaving the potential for additional firm market support.
Rick Kment can be reached at firstname.lastname@example.org
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