U.S. ethanol production dropped last week and supplies shot higher as bitterly cold weather, heavy snowfall, and a lack of available natural gas restricted corn movement, closed some plants, and limited travel.
That has compounded some of the issues already facing the industry, including slower blending demand caused by reduced travel linked to COVID-19 and higher input costs because of higher corn prices.
The U.S. Energy Information Administration says production averaged 911,000 barrels a day, down 26,000 barrels on the week and 129,000 on the year for the lowest average since late September 2020.
