Record volumes of U.S. ethanol have been churned out since late last year, largely due to an uptick in exports and steady domestic demand.
But output has slipped from those record levels over the last couple of weeks, coinciding with the ramp-up of the summer driving season.
Luckily, large stockpiles of the corn-based fuel additive can offset some of the easing in output for now.
However, both exports and domestic travel trends will need to be monitored in the coming weeks and months since this is when U.S. motor gasoline demand typically peaks.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
