News

Ethanol production, supply down on week

U.S. ethanol production dropped last week.

The U.S. Energy Information Administration says production was the lowest since late June at an average of 1.061 million barrels per day, a decrease of 10,000 on the week, but an increase of 49,000 on the year.

That week-to-week decline can be tied to firmer cash grain prices in some areas, while the year-to-year gain is linked to demand expectations.

Iowa State University’s Center for Agricultural and Rural Development says estimated operating margins for the average Iowa plant dipped slightly and are below a year ago, while still holding in positive territory.

Ethanol stocks of 23.354 million barrels were 218,000 under the week before, but 1.733 million above this time last year.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders were higher than the previous week, but the volume of gasoline supplied to the market fell to a near two month low.

Ethanol exports averaged 91,000 barrels a day, 54,000 less than the previous week, but 9,000 above the prior year.

The USDA’s updated corn for ethanol use projection is out September 12^th.