Ethanol Production

Ethanol Production

Production: 1.028 mb/day
Weekly Total: 7.196 mil bbl
Stocks: 24.683 mil bbl
Corn Used: 101.76 vs 107.47 needed

Analysis 

Production dropped 6.5% to 1.028 million barrels per day for the week ending September 18, the lowest since late July and the biggest week over week decline on the table. Stocks drew 537,000 barrels to 24.683 million, the largest draw since early July, but still sit 5.2% above year ago and carry a 2.3 million barrel cushion over the five year average.

The new crop year started September 1 and the math has reset. USDA’s 26/27 target is 5.600 billion bushels, up from the 5.575 that governed last year’s pace. At 101.76 million bushels this week against 107.47 needed, corn usage came in below the weekly run rate for the first time under the new target. Three weeks into the marketing year with cumulative use at 272.7 million bushels, plants are running 5.3% behind the pace USDA needs.