News

Ethanol production rises on margins, demand

U.S. ethanol production bounced back after a couple of weeks of decline.

The U.S. Energy Information Administration says production averaged 1.094 million barrels per day, up 54,000 on the week and 16,000 on the year, supported by margins and demand expectations.

The Iowa State University Center for Agricultural and Rural Development says the estimated return for the average Iowa plant remained firmly in positive territory, encouraging production and strong demand for corn.

Ethanol stocks of 24.481 million barrels rose 90,000 from the previous week and 37,000 from a year ago.

The Gulf reporting area did show a drawdown in supply due to export business.

Ethanol exports averaged 158,000 barrels per day, an increase of 77,000 from the week before and 50,000 from last year.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders jumped to a more than one-year high, while the volume of gasoline supplied to the market also saw a week-to-week improvement.

The USDA’s updated corn for ethanol use guess is out August 12^th.