By Kirk Maltais
U.S. ethanol production has risen this week, bringing the daily production rate to its highest in over three years.
In its latest weekly report, the EIA said that U.S. daily ethanol production through Oct. 22 hit a rate of 1.11 million barrels a day, up from 1.1 million barrels a day reported last week. The uptick hits the high-end of estimates from analysts surveyed by Dow Jones this week, who had expected production to be anywhere from 1.04 million barrels to 1.11 million barrels a day.
It's the highest daily ethanol production has been since August 2018, and is propelling corn futures trading on the Chicago Board of Trade higher this morning--with the most-active contract up 2.8% at nearly $5.59 per bushel after the report's release. Grain traders had anticipated Wednesday that ethanol production would surge thanks to strong margins for producers.
Meanwhile, U.S. ethanol inventories sank this week, with stocks reported at 19.93 million barrels. Analysts were looking for inventories to be anywhere from 20.08 million barrels to 20.26 million barrels.
To see related data, search "U.S. DOE Oil Data: PADD Breakdown" in Dow Jones NewsPlus.
Write to Kirk Maltais at email@example.com
(END) Dow Jones Newswires
October 27, 2021 11:24 ET (15:24 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.