Ethanol production recedes, stocks climb
U.S. ethanol production peeled back from the recent near-record highs last week as stocks grew.
The U.S. Energy Information Administration says production averaged 1.039 million barrels a day, down 68,000 on the week, but up 62,000 on the year.
Ethanol margins remain firmly in positive territory, but there are some signs demand could be slipping. The Renewable Fuels Association says net inputs by refiners and blenders moved lower for the second consecutive week, hitting a six-month low, and the volume of gasoline supplied to the market also declined. Both are still well above a year ago, when demand was being suppressed by the pandemic.
The domestic supply of 20.286 million gallons was a nine-week high, and an increase of 157,000 from the previous week and 127,000 from this time last year.
The USDA says Midwest ethanol prices last week were higher.
The USDA has corn for ethanol use this marketing year at 5.25 billion bushels, up 50 million from October, with the next guess out December 9th.