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Ethanol production drops again
U.S. ethanol production fell sharply last week, discouraged by holiday and weather related slowdowns and poor margins. That’s the fourth week in a row with a decline.
The U.S. Energy Information Administration says production for the week ending December 30th averaged 844,000 barrels a day, the lowest weekly average in nearly two years, down 119,000 from a week ago and 204,000 from a year ago.
Iowa State University’s Center for Agricultural and Rural Development says the projected margins for the average Iowa producer ended 2022 in negative territory, well below the highs of the year.
Demand is also an issue, with two important signals reflecting those concerns. The Renewable Fuels Association says net inputs by ethanol refiners and blenders hit a 51-week low while the volume of gasoline supplied dropped to a 97-week low.
The domestic ethanol supply was reported at 24.444 million barrels, 192,000 below the prior week, but 3.085 million above last year.
The USDA’s next corn for ethanol use estimate is out Thursday, January 12th at Noon Eastern/11 Central.
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