U.S. ethanol production, stocks below week ago levels
U.S. ethanol production declined last week, falling to a 20-week low on a combination of seasonal maintenance and tighter margins for some producers, in addition to some demand concerns linked to the economy.
The U.S. Energy Information Administration says production averaged 963,000 barrels a day, down 26,000 on the week, but up 26,000 on the year.
Two key indicators of demand were also below a week ago.
The Renewable Fuels Association says net inputs by ethanol refiners and blenders hit an eight-week low and the volume of gasoline supplied to the market was nearly 3% lower.
However, one other key demand indicator was positive, with the domestic supply falling to a two and a half month low at 22.843 million barrels, 295,000 below the previous week, but still 2.833 million above this time last year.
The USDA trimmed its corn for ethanol use estimate in this week’s supply and demand report, with the next projection out October 12th.