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U.S. ethanol supply gets tighter

U.S. ethanol stocks hit six-month lows last week as recent demand improvements and near steady production drew down supplies.

The U.S. Energy Information Administration says stocks of 19.736 million barrels were down 711,000 barrels on the week and 6.601 million on the year, the fifth week in a row with a decline and the tightest domestic supply since late October 2020.

The Renewable Fuels Association says blending demand and the volume of gasoline supplied to the market did both move slightly lower last week, but remain well above last year’s levels, during the early stages of the COVID-19 pandemic.

Production averaged 945,000 barrels a day, 4,000 higher than the previous week and 408,000 larger a year ago, but 79,000 below this time in 2019.

The USDA says ethanol prices were higher last week, supported by solid demand.

The USDA’s next corn for ethanol use estimate is out May 12th.

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