News

Ethanol production, stocks dip

U.S. ethanol production moved modestly lower last week.

The U.S. Energy Information Administration says production averaged 1.018 million barrels a day, a decline of 23,000 on the week and 17,000 on the year. Part of that decline can be linked to industry uncertainties about a rail strike, which would greatly limit domestic movement of ethanol. Iowa State University’s Center for Agricultural and Rural Development says margins fell a little bit below the cost of production for some Iowa producers.

The Renewable Fuels Association says net inputs by refiners and blenders were up fractionally, while the volume of gasoline supplied to the market was down fractionally.

The U.S. ethanol supply hit a twelve week high at 22.934 million barrels, the second week in a row with an increase, 105,000 than the previous week and 2.633 million above a year ago.

The RFA says 7.35 million gallons of ethanol arrived in U.S. ports, the first reported imports in six weeks, all on the West Coast and likely non-corn ethanol from Brazil which better meets California’s emission standards.

The USDA’s next corn for ethanol use estimate is out December 9^th.