Rising Ethanol Stocks Could Lead to Further DDGS Decline

Weekly ethanol production declined for a second consecutive week, falling 42 thousand barrels per day to a 1.06 million-barrel-per-day average for the week ending January 7, 2022. Ethanol output was four percent below last week but seven percent above year ago levels. The decline in ethanol production lowered DDGS output 3,995 metric tons (MT) per day to 95,679 MT but was 6,182 MTs above production from a year ago.

Weekly gasoline supply fell 3.3 percent to 7.9 million barrels per day but was five percent over levels seen at this time last year. Ethanol stocks of 22.91 million barrels increased for a second straight week and were 7 percent above last week but 3.3 percent under year ago levels.  Imports of sugarcane ethanol were again absent on the West…