News

Ethanol production rises as stocks tighten

U.S. ethanol production bounced back last week.

The U.S. Energy Information Administration says production averaged 987,000 barrels a day, up 33,000 on the week as some plants ended seasonal maintenance, and 11,000 above last year.

Iowa State University’s Center for Agricultural and Rural Development says operating margins for the average Iowa plant were nearly unchanged from a week ago and well below a year ago, reflecting the lower returns for most producers.

The Renewable Fuels Association says ethanol stocks fell to a 12-week low at 25.488 million barrels, a decrease of 245,000 from the week before, but an increase of 2.125 million from this time last year.

Net inputs of ethanol purchased by refiners and blenders improved to a more than six month high, with the volume of gasoline supplied to the market also above the prior week.

Ethanol exports fell for the second week in a row, dropping 56,000 barrels to an average of 78,000 barrels a day.

Corn for ethanol use remains on pace to meet or exceed USDA projections for the current marketing year, with the updated guess out Friday the 10^th.