Ethanol production rebounded nicely form last week up to 1.028 million barrels per day and that’s above USDA needed level.

We need to be producing about 1.019 million barrels per day and this includes USDA’s 25-million-bushel increase.

With ethanol prices treading anywhere from 80-90 cents and occasionally a $1 per gallon below the gasoline price, we can expect ethanol production to remain strong if that relationship continues.