News

Ethanol supply tightens

U.S. ethanol stocks contracted last week, remaining near a four-year low.

The U.S. Energy Information Administration says the supply of 19.672 million barrels was down 19,000 on the week and 1.552 million barrels on the year, for the tightest supply since late 2016 because of lower production levels earlier this year.

The Renewable Fuels Association says the amount of gasoline supplied to the market increased last week, while ethanol blending inputs decreased and both remained well below a year ago.

Production averaged 923,000 barrels a day, 42,000 more than the previous week, but 40,000 less than last year as the uncertainties about blending demand because of COVID-19 continue to limit production.

The USDA’s next corn for ethanol use estimate is out Friday at Noon Eastern/11 Central.