Ethanol production remains on target.

Weekly ethanol production, delayed one day due to the holiday, showed a third week of rebounding activity. At 1.084 million barrels per day the EIA's report was +5.3% vs. last year. The prior two weeks were +6.8% and 3.3%.

Year to date production, much better than expected, is running +4.3%. USDA's current corn for ethanol goal is +3.8%. Excluding any efficiency gains the remainder of the year must run +3.0%. We will point out the prior two years had efficiency gains of +0.9% and +0.6%. For now, we'll say that at worst we are meeting USDA's whole year corn for ethanol goal. We remain at USDA's 5.375 billion bushel estimate.

Gasoline demand last week ran -0.9% from last year. The year to date pace, Sep 1 to current, is only +0.7%.

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