News

Ethanol production, domestic supply both rise

U.S. ethanol production was up on the week.

The U.S. Energy Information Administration says an average of 1.08 million barrels of ethanol were produced a day, an increase of 19,000 on the week and 41,000 on the year.

That comes as producers continue to try to meet domestic and export demand expectations, helped by solid operating margins.

Iowa State University’s Center for Agricultural and Rural Development says those operating margins held just about steady last week, remaining firmly in positive territory.

Ethanol stocks of 23.714 million barrels were a five-week high, rising 360,000 from the previous week and 2.543 million from a year ago.

Other demand signals were mixed.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders fell to a two-month low, while the volume of gasoline supplied to the market was the lowest in 20 weeks.

Ethanol exports averaged 177,000 barrels a day, 86,000 more than the prior week and 109,000 above this time last year.

The USDA expected 5.45 billion bushels of corn to be used for ethanol production this marketing year.