The latest weekly report from the U.S. Energy Information Administration reveals a significant surge in average daily production of ethanol in the U.S., accompanied by a notable drop in inventory figures. These developments in the ethanol market indicate important shifts in supply and demand dynamics.
Increase in Average Daily Production
According to the report, the average daily production of ethanol in the U.S. reached 1.039 million barrels per day for the week ending September 8. This represents a notable increase of 27,000 barrels per day compared to the previous week’s figures. The higher production levels have exceeded the expectations of analysts surveyed by Dow Jones, who had predicted an average ranging from 1.012 million barrels to 1.027 million barrels.
Decline in Ethanol Inventories
Concurrently, the report also highlights a significant decline in ethanol inventories, resulting in their lowest level since 2021. Inventories fell by 450,000 barrels to a total of 21.17 million barrels. This decrease falls within the range projected by analysts, with estimates ranging from 20.9 million barrels to 21.54 million barrels.
Impact on Corn Futures Trading
The impact of these developments is evident in corn futures trading on the CBOT, where prices have increased by 0.7%. This comes after the release of the WASDE report, which initially caused a dip in futures prices due to the USDA’s estimation of higher planted and harvested acreage. Despite this initial decrease, the surge in ethanol production and dwindling inventories have reassured traders and contributed to the recent uptick in prices.
For further information and related data, please refer to Dow Jones NewsPlus by searching for “U.S. DOE Oil Data: PADD Breakdown.”
