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U.S. ethanol production moved higher during the final week of May while inventories declined and exports posted a strong increase. That’s according to new data analyzed by the Renewable Fuels Association. For the week ending May 29, ethanol production rose 1.7 percent to 1.11 million barrels per day, equal to roughly 46.5 million gallons daily. Production was slightly above year-ago levels and more than four percent higher than the five-year average for the week.
Meanwhile, ethanol stocks fell 1.4 percent to 24.6 million barrels, marking the lowest inventory level in 20 weeks. A bright spot for the industry came from export markets, where ethanol shipments jumped 32.4 percent to 135,000 barrels per day.
However, domestic gasoline demand, an indicator of ethanol demand, weakened, falling 7.2 percent to an eight-week low. Refiner and blender ethanol use also slipped 4.1 percent, reflecting softer near-term fuel demand despite continued strength in production and export activity.
NAFB news service
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