DDGS and Ethanol Production May Face Headwinds From Historic High Stocks of Distillate Supply

Ethanol production declined 15,000 barrels per day to a 926 million-barrel-per-day average during the week ending September 11, 2020.  The ethanol and DDGS output pullback erased most of the prior week’s gain while gasoline supply saw a slight rebound. Ethanol production was 1.6 percent below last week’s report and eight percent below levels at this time last year. DDGS output decreased 1,427 metric tons per day and remains 7,323 MT below production from a year ago. 

Gasoline supply moved one percent higher but was 5.2 percent below 2019 levels for the same weekly period. Ethanol stocks dropped by one percent, reaching a five-week low and are 15 percent below levels from a year ago. Ethanol imports returned, reaching 10.6 million gallons on the West Coast. The decline in ethanol output reduced corn demand by 222 thousand bushels per day. DDGS…