Ethanol production sees a rebounds

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%.

The first four weeks of July production were lightly disappointing at +2.4%. This week, covering five days of July and two of August, was 1.067 million barrels per day. This was positive at +4.3%. For the coming August 12 monthly USDA report we are at USDA's corn for ethanol view. The current general pace however, would suggest a light miss.

Gasoline usage last week was -3.6%. Since September it has run -0.3%.

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