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U.S. ethanol production continues higher trend

Domestic ethanol production has moved higher for the sixth consecutive week. The U.S. Energy Information Administration says production last week averaged 1.051 million barrels a day, the highest average since late June, and up 11,000 on the week and 12,000 on the year.

The week-to-week gain can be tied to the increased availability of new crop corn and part of the year-to-year gain is demand expectations.

Iowa State University’s Center for Agricultural and Rural Development says margins for most producers moved further into positive territory last week, also encouraging production.

The Renewable Fuels Association says net inputs by ethanol refiners and blenders moved to a seven week low, while the volume of gasoline supplied to the market was up just over 4%.

Ethanol stocks were reported at 22.192 million barrels, a decrease of 40,000 from the previous week, but an increase of 1.906 million from a year ago.

The USDA left its corn for ethanol use estimate unchanged from October at 5.275 billion bushels.