Ethanol stocks continue to tighten

The U.S. ethanol supply hit a more than six month low last week.

The U.S. Energy Information Administration says domestic stocks contracted 456,000 barrels on the week to 21.346 million, which is also down 267,000 barrels on on the year because of seasonal improvements in blending demand and continued below a year ago production.

That is the eighth week in a row with a supply reduction.

Production last week averaged 841,000 barrels a day, up 4,000 from the previous week, but still 240,000 barrels less than last year as some plants idle or scale back production because of margins and uncertainties about long-term demand caused by the spread of COVID-19.

The USDA’s next for corn ethanol use estimate is out July 10th.

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