DDGS Output Slows as Margins remain Soft

Ethanol production declined 27,000 barrels per day to a 931 million-barrel-per-day average during the week ending July 31, 2020.  Ethanol and DDGS output fell on a weekly basis for only the second time since late April. Production slipped 2.8 percent and was 10.5 percent below levels at this time last year. DDGS output was 2,568 metric tons per day below last week’s pace and 10,367 MT below production from a year ago. 

Gasoline supply fell two percent from the prior week and is 10.7 percent below 2019 levels for the same weekly period. Ethanol stocks increased fractionally, holding just above the 20-million-barrel level. Ethanol imports continued for a second continuous week with 3.2 million gallons arriving on the West Coast. The decline in ethanol output lowered corn demand by 400 thousand bushels per day. DDGS output moved with ethanol production, falling 2.8 percent for the…