Ethanol production rebounds in August.

September - June corn for ethanol usage has totaled 4.510 billion bushels, +5.4% from last year. To meet USDA's current 5.450 billion whole-year goal July and August usage need to run 940 million bushels, +4.8%. Given the fact this year's production efficiency is lower than last year we estimate actual ethanol production only needs to run +3.5% from last year in these two months. That is our goal for July and August ethanol production, +3.5%.

July was a light disappointment at +2.7% year/year. August has been fine with +0.3%, +4.3% and today's report at +6.4% year/year. We are currently holding USDA's old crop corn for ethanol estimate on our balance sheet.

Last week's general gasoline usage was +2.6% year/year. Since September 1 the year to date pace is -0.1%.

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