Ethanol production was estimated higher last week at 663,00 bbl/day. Distillers corn oil production is estimated higher as well, up to 6.3 million pounds per day. Production is at its highest level since the week ending April 3^rd.  DCO production is up 7.5 percent from week ago levels, but down 38 percent compared to last year. The increased production and lower priced soybean oil in April and early May have weighed on prices.

While ethanol and co product production is higher, gasoline demand fell last week. The EIA estimated 285.2 million…