By: NATHAN STUEDLE
American ethanol production has reached its highest level in more than nine months, providing continued demand for domestically produced corn. The Energy Information Administration reports ethanol production averaged 1.14 million barrels per day during the week ending October thirtieth. That's an increase from 1.11 million barrels the previous week and the highest production level since January ninth. Midwestern ethanol plants accounted for most of the increase, with regional output climbing to 1.09 million barrels per day.
Production also increased slightly along the West Coast, while Gulf Coast and East Coast facilities reported declines. Despite the higher production rate, ethanol inventories decreased to 24.434 million barrels. The combination of rising production and declining inventories indicates continued movement of ethanol through the market. Ethanol remains an important source of demand for American corn as producers finish harvesting a potentially record crop.