Ethanol production down as stocks rise
U.S. ethanol production fell sharply last week.
The U.S. Energy Information Administration says production averaged 980,000 barrels a day, the lowest since early May, down 59,000 barrels from the previous week with some plants idling for maintenance after the summer driving season. Still, that is up 79,000 barrels on the year with producers encouraged by strong margins.
Iowa State University’s Center for Agricultural and Rural Development says operating margins for the average Iowa plant gained more ground, hitting the highest levels since late 2021 due to solid demand and relatively low corn prices.
The Renewable Fuels Association says net inputs by refiners and blenders moved to a ten week low, even as the volume of gasoline supplied to the increased slightly.
Ethanol stocks were reported at 21.681 million barrels, 510,000 more the prior week’s almost two year low, but 820,000 less than mid-September 2022.
Ethanol exports were the largest since late July, averaging 109,000 barrels a day, a gain of 41,000 from the week before.
The USDA’s next corn for ethanol use estimate is out October 12th.