After more than a year of record ethanol output, production may finally be starting to slow. In its December WASDE report, USDA reduced total corn demand for ethanol manufacturing by 50 million bushels to 5.6 billion bushels for 2018/19.
Ethanol margins have been squeezed by low crude oil prices paired with an increase in corn futures prices. Ethanol futures, conversely, reached the lowest point since the market began trading in 2006, with the earlier strong production now leading to a rise in inventories. Carryout for September was reported at 1.025 billion gallons, up 14 percent from a year prior.
U.S. ethanol ending stocks seasonal comparison
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