Ethanol plantEthanol stocks continue to grow, with the latest U.S. Energy Information Administration confirming the eighth consecutive week of increased stocks. But production has dropped to a near three-year low. Domestic ethanol supplies now total 25.815 million barrels, the largest since March 2023 and 0.5% higher than last week.

Bitterly cold temperatures impacted much of the U.S. last week, leading to possible dips in demand. Weather also likely influenced production which averaged 818,000 barrels per day, the lowest since February 2021. The Renewable Fuels Association reports net inputs of ethanol purchased by refiners and blenders, as well as gasoline volumes, saw big declines due to slower consumer demand.

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