Ethanol production climbs higher as stocks fall
U.S. ethanol production moved higher last week.
The U.S. Energy Information Administration says production averaged 1.028 million barrels a day, up 16,000 and the fourth week in a row with a gain as two important indicators of demand showed improvements.
The Renewable Fuels Association says net inputs for ethanol blenders and refiners were 1% higher and the volume of gasoline supplied to the market climbed more than 4% to a five-week high.
The weekly average was down 13,000 on the year because of uncertainties about sustained ethanol demand due to relatively high gas prices and negative margins for some producers.
The Iowa State University Center for Agricultural and Rural Development says profit margins for the average Iowa producer fell back into the red last week.
The U.S. ethanol supply fell 635,000 barrels from the recent multi-month highs to 24.442 million barrels, which was 1.412 million below a year ago.
The USDA’s next corn for ethanol use estimate is out February 8th.