5/26/2022 8:00am

US ethanol production rose to an 8-week high to 298 million gallons in the week ending 5/20/22. Such production utilizes over 102 million bushels of corn, close to the May pace we would expect to see hit the USDA’s corn-for-ethanol estimate of 5.375 bln bu.

US ethanol stocks were little changed at 996 million gallons. The rebound in production comes as Midwest stocks fell to their lowest level since the final week of 2021.

Plants have been forced to reduce grind with full tanks due to poor rail logistics. At the same time ethanol stocks on the East, West and Gulf coasts have risen to be close to or above year ago levels.