News

Ethanol production falls to more than one-year lows

Ethanol production and stocks hit multi-month lows last week.

The U.S. Energy Information Administration says production averaged 901,000 barrels a day, a drop of 62,000 on the week and 25,000 on the year.

That is the lowest weekly average since February 2021 as producers continue to limit operations due to plant maintenance and demand uncertainties while preparing for increased new crop corn availability.

The domestic supply fell for the fourth week in a row, hitting the lowest level since late last year at 22.501 million barrels, a decrease of 342,000 from the previous week but an increase of 2.39 million from last year, when the industry was experiencing heavier demand also during a maintenance phase.

Two important indicators of demand saw week-to-week declines.

The Renewable Fuels Association says net inputs by ethanol refiners and blenders moved to a 24-week low and the volume of gasoline supplied to the market was down 2%.

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