Ethanol Supply is Outpacing Demand While DDGS Supply is Not

Ethanol production declined 34,000 barrels per day to a 957 million-barrel-per-day average during the week ending December 11, 2020.  DDGS and Ethanol volumes pulled back from their highest levels since the pandemic was announced as current ethanol output seems to be higher than needed.  Weekly output fell 3.4 percent and was 10 percent below levels seen at this time last year. DDGS output declined by 3,234 metric tons per day and was 11,403 MT per day below production from a year ago. 

Gasoline supply increased for the first time in five weeks, rising five percent but was 10 percent below 2019 levels for the same period. Ethanol stocks continued to build, climbing four percent to 23 million barrels, a 29-week high. Sugarcane ethanol imports continued to arrive on the West Coast, adding an additional 4.4 million gallons to…