U.S. ethanol production bounced back in the last week with good demand helping offset high prices for key ingredient corn.
The Energy Information Administration said on Wednesday that U.S. ethanol production totaled 904,000 barrels per day, up 5,000 barrels per day from the previous week.
"Production is up because demand remains strong and margins are as well," said analyst Tom Waterman. "Ethanol prices continue to accelerate when corn moves up."
Ethanol stocks rose to 18.24 million barrels, up 661,000 barrels over the last week, the EIA said in its weekly report.