News

Ethanol production down sharply, stocks rise

U.S. ethanol production fell sharply again last week due to the lower trend in crude oil prices and uncertainties about demand.

The U.S. Energy Information Administration says production averaged 855,000 barrels a day, a drop of 46,000 on the week and 59,000 on the year. That is the lowest weekly average since February 2021 when production was impacted by heavy snow and bitterly cold conditions in much of the Midwest.

The Renewable Fuels Association says the volume of gasoline supplied to the market was 6% above a week ago at a six-week high, but that was 6.1% below a year ago, while net inputs by ethanol refiners and blenders were up from both the previous week and last year.

Ethanol stocks were reported at 22.691 million barrels, a 190,000 barrel increase from the prior week and 2.471 million more than late September 2021.

The USDA’s next corn for ethanol use estimate is out October 12^th.