According to the Energy Information Administration's (EIA) weekly fuel report, ethanol output hit 872,000 barrels per day (bpd) for the week ending July 8, with the biofuel topping out at $2.845 per gallon.
Last week's decline in production may be an unexplainable abnormality, or it may be due to seasonal maintenance at some refineries, or possibly even lack of demand. Corn used for ethanol production was predicted to rise to 5.05 billion bushels, accounting for 41 percent of the U.S.' corn crop and surpassing the previous highest amount used as feed for the first time in U.S. history. It's not yet clear how or if the production hiccup last week will have an impact on year-end results.
[Source: Reuters | Image: diaper – C.C. License 2.0]