U.S. ethanol production has been nothing short of impressive this season, as processors continued to outpace expectations. The Energy Information Administration’s latest petroleum report showed that ethanol production averaged 1.196 million barrels a day during the week ending Jan. 9, hitting a new daily record. Output was up about 9 percent from the previous week and the same week last year.

The estimated corn used for ethanol production was about 115.4 million bushels. Cumulative corn crush for the marketing year rose to approximately 2.007 billion bushels, reaching 35.8 percent of the USDA’s 2025/26 target. As expected, the agency left its corn ethanol use forecast unchanged at 5.60 billion bushels in its January WASDE report on Monday.

U.S. ethanol inventories rose 3.5 percent last week to 24.47 million barrels. Volumes were back above the five-year average but were still below year-ago levels.

Gasoline inventories have risen substantially since November and are sitting at the highest level in about a year. Additionally, inventories are the lowest seasonally since 2020, likely keeping gasoline prices suppressed near 2021 levels. U.S. implied gasoline demand rose slightly last week but remained at seasonally low levels.

Ethanol exports averaged 119,000 barrels a day last week, compared to 113,000 barrels the previous week and 125,000 the same week last year.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.