Ethanol production starts the year strong.

The new corn marketing year started on September 1. USDA sees corn for ethanol in this year at 5.450 billion bushels. That would be -0.3% from USDA's view of old crop, 4.650. For now we won't make any adjustments to ethanol production efficiency with this new corn crop. The old crop year was efficiency -1.3%. For now, our goal with ethanol production is -0.3%.

It is far too early to make grand statements about this year's pace. For now, the first two weeks of +4% and +7% are ahead of the needed goal.

Gasoline demand in the second week of the new corn marketing year was +4% from last year. The first week was also good at +2%.

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