U.S. ethanol production, stocks down on week
U.S. ethanol production saw a decline last week as stocks contracted.
The U.S. Energy Information Administration says production averaged 1 million barrels a day, down 28,000 on the week as two major indicators pointed to slower demand. That was up 6,000 barrels a day on the year.
The Renewable Fuels Association says net inputs by refiners and blenders fell to a five-week low and the volume of gasoline supplied to the market was down fractionally.
Iowa State University’s Center for Agricultural and Rural Development says operating margins for the average Iowa producer did improve slightly, but remained in negative territory, also discouraging production.
The domestic ethanol supply was reported at 24.417 million barrels, a decrease of 25,000 from the previous week and 382,000 below a year ago.
The USDA expects 5.25 billion bushels of corn to be used for ethanol production this marketing year, 50 million less than in January.