Ethanol/DDGS Production Climbs as Ethanol Margin Surges

Ethanol production increased 17,000 barrels per day to a 931 million-barrel-per-day average during the week ending July 10, 2020.  Ethanol and DDGS output are at their highest level in 16 weeks and 73 percent above their pandemic low. Production is 1.9 percent higher than the week prior but 13 percent below levels at this time last year. DDGS output increased 1,617 metric tons per day over last week’s average but is 12,840 MT below production from a year ago. 

Gasoline supply declined 1.4 percent from and is six percent below 2019 levels for the same weekly period. Ethanol stocks declined after rising for the first time in 11 weeks, slipping to 20.61 million barrels.  There were no ethanol imports during the past week. The increase in ethanol production raised corn demand by 252 thousand bushels per day. DDGS output moved with ethanol production, rising 1.9 percent for…