Ethanol production improves slightly
U.S. ethanol production was up fractionally last week.
The U.S. Energy Information Administration says the average of 1.003 million barrels a day was up 6,000 on the week, but down 33,000 on the year.
The mixed production is due to demand uncertainties caused by relatively high gasoline prices as the ethanol industry pushes for year round access to E15.
The Renewable Fuels Association says two big indicators of demand are pointing to improvements ahead of a seasonal increase in travel, as net inputs by refiners and blenders and the volume of gasoline supplied to the market hit their highest levels since late December 2022.
Also pointing to better demand, ethanol stocks of 25.527 million barrels were 661,000 below the previous week and 1.002 million under this time last year.
Iowa State University’s Center for Agricultural and Rural Development says operating margins for the average Iowa plant are in positive territory.
The USDA’s next corn for ethanol use estimate is out April 11th.