Weekly Ethanol Production

We did get a weekly ethanol production report today and it was quite positive for the corn market. Weekly ethanol production surged to 1.067 mil barrels/day. That’s the largest level going back to March, 2020. In addition, the black line is the level needed to reach USDA’s target of corn use for ethanol and that is 990K barrels/day and today’s number at 1.067 mil barrels/day well above the level need. In fact, we’ve been above the level needed the last 4 weeks. It’s also worth noting that ethanol production is getting back close to the level from 2 year ago, prior to the pandemic. Again, this is good news for use and USDA is likely underestimating corn use in the ethanol industry.