Ethanol production reached an all-time high in June 2010, according to data released by the Energy Information Administration (EIA). Additionally, ethanol demand for June also hit a record level.
According to the latest numbers, ethanol production in June was just over 854,000 barrels per day (b/d), or 1.08 billion gallons for the month, nearly 19 percent higher than June 2009. Based on the totals of the first six months for this year, US ethanol production is on target to reach 12.87 billion gallons this year.
According to the Renewable Fuels Association (RFA), ethanol demand also reached an all-time high in June of 857,000 b/d, up almost 16 percent from a year ago.
Interestingly, the monthly figures from EIA for June are higher than the weekly production averages EIA recently began reporting. According to the weekly data from EIA highlighted by RFA, June production averaged just 839,000 b/d or a difference of 15,000 b/d compared to the monthly figure released today. At 18.9 million gallons for the month, this is a rather large discrepancy. Subsequent weekly and monthly reports will be needed to determine if the discrepancy between the monthly and weekly data is a trend or just a result of the kinks being worked out of the new weekly reporting requirement.
Meanwhile, the latest weekly report from the Energy Information Administration shows that ethanol was keeping up the pace in August with a 4-week average the same as June at 854,000 b/d.
Prices are going up right along with production and demand. According to Bloomberg, the price for ethanol surpassed gasoline this week for the first time since December, up 22 percent since May, while gas is down 6.5 percent.