News

Ethanol production up on week, with support from margins

U.S. ethanol production rose to a multi-month high last week, propelled by margins and demand expectations.

The U.S. Energy Information Administration says production averaged 1.117 million barrels per day, the highest since mid-April, and up 27,000 on the week and 41,000 on the year.

The Iowa State University Center for Agricultural and Rural Development says the estimated operating margin for the typical Iowa plant is in solidly positive territory, indicating a good return on production.

While ethanol stocks of 24.69 million barrels were 105,000 larger than the previous week and 573,000 more a year ago, supplies did tighten at the Gulf, reflecting generally solid export demand.

Ethanol exports averaged 126,000 barrels per day, 5,000 above the week before, but 5,000 below last year.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders had a week-to-week dip, even as the volume of gasoline supplied to the market moved higher.

The USDA’s updated corn for ethanol use guess is out July 10^th.