Ethanol Production Hits New, Record Low

The market was fairly quiet today with not a lot of volume reported. Tight production, rampant uncertainty and internal usage are limiting the loads of animal fats, used cooking oil and distillers corn oil available to the market.

The EIA estimated ethanol production down to 563,000 barrels per day for last week, a new record low. Gasoline demand was higher at 223 million gallons last week, up 15 percent from the week prior, but just 56 percent of demand from April of 2019. Distillers corn oil production is estimated at 5.34 million pounds per day for last week, down 1 percent from the week prior and 46 percent from last year. DCO prices were up today on trading for limited volume. There are pockets of trading as high as $0.3500 FOB, but most trading has been done within the printed range. There is risk for lower prices in the near term regardless of tight supplies due to the cheaper soybean oil price. At $0.2400 FOB Midwest…