* Ethanol output falls 6,000 bpd to 796,000 bpd
* Daily output lowest since records began in June 2010
By Michael Hirtzer
July 25 (Reuters) - U.S. ethanol production fell to a record low last week, in the sixth straight week of declines, as surging corn prices and tight supplies of the grain squeezed margins at biofuel refineries, government data released on Wednesday showed.
Ethanol production fell 6,000 barrels to 796,000 barrels per day in the week ending July 20, the lowest weekly total since the U.S. Energy Information Administration began tracking the data two years ago.
It was the second consecutive week that production hit the lowest total on record.
However, the 0.7 percent decline in production was the smallest drop in more than a month while stocks of the fuel fell 551,000 barrels to 19.01 million barrels, the data showed.
Chicago Board of Trade corn futures hit an all-time high of $8.28-3/4 per bushel on the final day of the reporting period as the most expansive U.S. drought in five decades reduced yields of the developing crop.
At least three U.S. plants are idled until profit margins improve.
Scorching temperatures in much of the United States have also led some ethanol plants to slow down production, as the refineries run less efficiently in hot weather. (Reporting by Michael Hirtzer in Chicago; Editing by Tim Dobbyn)