U.S. ethanol production fell to its lowest level in four months, according to the latest report from the Energy Information Administration. For the week ending September 19, American ethanol output averaged 1.024 million barrels per day, a drop from 1.055 million barrels the previous week. That marks the lowest production rate since May 9.
The Midwest, home to the nation’s largest ethanol supply, recorded the steepest decline. Output in the region fell to 964,000 barrels per day from 997,000 the week before, also the lowest in four months. Production remained unchanged in the Gulf Coast, Rocky Mountain, and West Coast regions. The East Coast was the only area to see an increase, averaging 13,000 barrels per day, up from 12,000 the previous week.
While production slowed, ethanol inventories climbed to 23.46 million barrels, reflecting a build-up in supplies despite weaker output. Analysts say these trends could add pressure to corn markets, since ethanol production is a key driver of demand for U.S. corn.
