Ethanol production falls as supply grows
U.S. ethanol production declined for the fourth consecutive week.
The U.S. Energy Information Administration says production averaged 1.005 million barrels a day, down 39,000 on the week and 36,000 on the year due to the July 4th holiday and demand concerns linked to the high price of gasoline.
The Renewable Fuels Association says the volume of gasoline supplied to the market fell more than 14% to a 26-week low and net inputs by ethanol refiners and blenders dropped 2% to an 11-week low.
Iowa State University’s Center for Agricultural and Resource Economics says margins remain in positive territory for most producers.
Ethanol stocks hit a five-week high at 23.606 million barrels, an increase of 116,000 from the week before and 2.472 million from last year.
Fuels costs are falling in many areas but remain well above year ago levels.