Daily ethanol production in the U.S. fell much more than analysts expected, the lowest rate since February 2021.

In its most recent weekly report, released on Wednesday morning (September 21), the country's Energy Information Administration (EIA) said daily production was 901,000 barrels per day in the week ended September 16, up from 963,000 barrels per day the week before.

The rate is the lowest since February 2021, with a record of 849,000 barrels per day. For the report released this week, analysts polled by Dow Jones Newswires predicted a decline, but expected production of between 946,000 barrels and 958,000 barrels per day.

Ethanol inventories for the week fell to 22.5 million barrels, down from 22.8 million barrels the previous week.

The drop was within analysts' estimates, which predicted that inventories would fall from 22 million barrels to 22.89 million barrels. It's the fourth week in a row that stocks have falling.

Ethanol production figures in the United States are an indicator of domestic demand for corn. In the country, biofuel is mainly manufactured with grain and local industry consumes more than a third of the domestic cereal crop.

Source: RPA news