News

Ethanol production improves, stocks tighten

U.S. ethanol production bounced back last week.

The U.S. Energy Information Administration says production averaged 1.093 million barrels per day, an increase of 12,000 on the week and 36,000 on the year.

That week-to-week rise in production can be tied to significantly better weather easing movement issues and an improvement in margins.

Iowa State University’s Center for Agricultural and Rural Development says the estimated operating margins for the average Iowa plant climbed back into positive territory due to price declines for some inputs.

Ethanol stocks of 27.289 million barrels were down 282,000 from the prior week’s near five-year high, but still 1.238 million above a year ago because of a slowdown in demand.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders and the volume of gasoline supplied to the market were both sharply higher.

Ethanol exports averaged 123,000 barrels a day, up 8,000 from the week before and 11,000 from last year.

The USDA expects 5.5 billion bushels of corn to be used for ethanol production this marketing year, with the next guess out March 11^th.