Ethanol production rebounds.

Ethanol production rebounded last week to 1.083 million barrels per day. That was a strong +6.8% from one year ago run. Year to date numbers, +4.3% from one year ago, are still ahead of USDA's whole-year goal of +3.8%. To hold USDA's whole-year goal the remainder of the year needs to run +3.5%. December production was wildly over expectations. January, given weather issues, was a disappointment. USDA chose on 2/8 to leave its whole-year goal unchanged. Today's number was positive but we will hold judgement on this issue for a few more weeks. For now we'll stay at USDA's 5.375 billion bushel estimate.

Gasoline demand last week ran -3.1% from last year. The year to date pace, Sep 1 to current, is only +0.7%.

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