Ethanol production down, stocks tighten
U.S. ethanol production declined last week.
The U.S. Energy Information Administration says production hit a five-week low, averaging 1.011 million barrels a day, a decrease of 40,000 on the week and 49,000 on the year.
That could be due to a few different factors, including demand concerns linked to relatively high gasoline prices.
The decline was not due to margins, with Iowa State University’s Central for Agricultural and Rural Development reporting operating margins in Iowa are near the highs of the year.
The Renewable Fuels Association says net inputs by refiners and blenders were up 1% from the previous week, but the volume of gasoline supplied to the market was down 3%.
Ethanol stocks were 21.298 million barrels, the tightest domestic supply since December 2021, falling 894,000 from the week before, but still 1.217 million above a year ago.
The USDA’s next corn for ethanol use estimate is out December 9th.