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U.S. ethanol production drops
U.S. ethanol production saw its largest week to week decline on record because of weather.
The U.S. Energy Information Administration says production averaged 658,000 barrels a day, a drop of 253,000 on the week and the lowest average since May of 2020 as some plants cut back or idled production because of bitterly cold conditions and heavy snowfall, along with a lack of available natural gas used in production.
That is 396,000 barrels below year ago levels because of slower blending demand caused by reduced fuel use tied to COVID-19.
Higher corn prices cutting into margins have also contributed to the declines.
The USDA says cash corn prices in the Midwest moved higher last week as did ethanol prices.
The Renewable Fuels Association says the net inputs by refiners and blenders and the volume of gasoline supplied to the consumer were under week ago levels.
The supply of 22.785 million barrels was down 1.512 million barrels on the week and 1.933 million below a year ago.
The USDA’s next corn for ethanol use estimate is out March 9th.
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