Ethanol and DDGS Supply Hit 3-Week Low, May Underpin DDGS Pricing in Near Term

Ethanol production declined for the first time in three weeks reaching a three week low.  DDGS output fell as ethanol production dropped 34,000 barrels per day to a 941 thousand-barrel-per-day average during the week ending April 9, 2021.  Weekly ethanol output was 3.5 percent below the prior week but 65 percent over levels seen at this time last year when the pandemic significantly reduced driving demand for gasoline. DDGS output was 3,234 MT per day below last week but 35,285 MT’s per day over production from a year ago. 

Gasoline supply increased 1.9 percent and was 76 percent over 2020 levels for the same period. Ethanol stocks declined fractionally to 20.5 million barrels and were 25 percent lower than a year ago. Imports of sugarcane…