News

High heat restricts ethanol production, margins solid

U.S. ethanol production declined over the past week.

The U.S. Energy Information Administration says ethanol production averaged 1.089 million barrels per day, down 28,000 on the week as high temperatures in parts of the region reduced plant efficiency, but up 17,000 on the year as producers respond to demand expectations and margins.

The Iowa State University Center for Agricultural and Rural Development says operating margins for the average Iowa plant remained in positive territory and above this time last year, supporting a key piece of domestic corn demand.

Ethanol stocks of 25.121 million barrels were 323,000 larger than the previous week and 2.433 million more than a year ago.

The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders moved higher, even as the volume of gasoline supplied to the market hit an 11-week low.

Ethanol exports averaged 129,000 barrels per day, a gain of 20,000 from the week before, but a dip of 43,000 from last year.

The USDA’s updated corn for ethanol use projection is out September 11^th.