Ethanol production up, supply expands
Ethanol production and stocks both moved higher last week.
The U.S. Energy Information Administration says production was a six-week high at 1.004 million barrels, an increase of 21,000 from the previous week, but a decrease of 67,000 from a year ago.
Some plants are coming back on-line after seasonal maintenance as the industry prepares for summer driving season and expanded E15 access but continues to grapple with some questions about long-term demand.
Iowa State University’s Center for Agricultural and Rural Development says profit margins for the average Iowa plant dipped a little while still holding firmly in positive territory.
The Renewable Fuels Association says net inputs by ethanol refiners and blenders and the volume of gasoline supplied to the market were down on the week.
Ethanol stocks came out at 22.332 million barrels, 291,000 more than the prior week, but 629,000 less than last year.
Ethanol exports averaged 54,000 barrels a day and there were no recorded U.S. ethanol imports for the 25th week in a row.
The USDA’s next corn for ethanol use estimate is out June 9th.