Ethanol stocks fall for fifth straight week

Ethanol stocks have tightened for five weeks in a row.

The U.S. Energy Information Administration says the domestic supply is the tightest since last November at 22.041 million barrels, a decrease of 1.15 million on the week and 1.671 million on the year.

That’s due to improving demand as the retailers prepare for summer driving season and the ethanol industry gets ready for expanded E15 access.

The drawdown included a significant week-to-week decline at the Gulf, which could be a sign of new export demand.

The Renewable Fuels Association says net inputs by refiners and blenders jumped to the highest level since August 2022 and the volume of gasoline supplied to the market hit a four-week high.

Ethanol production averaged 983,000 barrels a day, 4,000 lower than the previous week and 27,000 under a year ago.

Iowa State University’s Center for Agricultural and Rural Development says profit margins for the average Iowa plant were higher last week, helped out by lower corn prices and that solid demand.

The USDA’s next corn for ethanol use estimate is out June 9th.

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