U.S. ethanol production edged higher in the week ending May 1, according to data from the Energy Information Administration and analyzed by the Renewable Fuels Association. Output rose 0.8 percent to 1.02 million barrels per day, while ethanol stocks increased slightly to 26 million barrels, well above both last year’s levels and the five-year average. However, gasoline demand, a key indicator for ethanol use, slipped 3.2 percent to a four-week low.
Ethanol exports also declined sharply, falling 18.2 percent for the week, signaling softer international demand. Despite that, production remains above historical averages. For U.S. corn growers and biofuel producers, the mixed data reflect both opportunity and uncertainty. Strong production and inventory levels support ongoing demand for corn, but weaker gasoline consumption and export declines could pressure prices if those trends continue.
-NAFB