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U.S. ethanol production fell to a three-month low in the week ending April 24. That’s according to new data from the Energy Information Administration, which raises concerns across the agricultural sector.
Output declined by 31,000 barrels per day to an average of 1.009 million, with the steepest drop occurring in the Midwest, the nation’s top ethanol-producing region. Midwest ethanol production dropped by 22,000 barrels a day to an average of 957,000 barrels a day.
Inventories also tightened, falling to a 50-day low of 25.881 million barrels. For U.S. farmers, particularly corn growers, the slowdown could signal weaker short-term demand for ethanol feedstocks, potentially pressuring prices.
However, tighter inventories may help stabilize markets if production rebounds.
Industry stakeholders say maintaining strong biofuel demand is critical to rural economies. While production dips can create uncertainty, ethanol remains a key market for U.S. corn, supporting farm income and local communities tied to biofuel production.
NAFB news service
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