Ethanol production dives, stocks rise
U.S. ethanol production declined slightly last week while the domestic supply was up.
The U.S. Energy Information Administration says production averaged 1.032 million barrels a day, 28,000 less than last week, but 27,000 more than last year.
Iowa State University’s Central for Agricultural and Rural Development says operating margins for the average Iowa plant were down modestly from on the week while still holding above a year ago.
The Renewable Fuels Association says two key demand indicators were bearish, with net inputs by refiners and blenders and the volume of gasoline supplied to the market both falling from the prior week.
Ethanol stocks were reported at 22.658 million barrels, a jump of 398,000 from the week before, but a drop of 948,000 barrels on the year.
The RFA says ethanol exports were a near two-year lows, averaging 51,000 barrels a day, 29,000 under a week ago.
The USDA expects corn for ethanol use to be 5.225 billion bushels this marketing year, rising to 5.3 billion next marketing year.