Ethanol stocks up again
Ethanol stocks have grown for seven consecutive weeks.
The U.S. Energy Information Administration says the domestic supply swelled to 25.695 million barrels last week, the largest since late March 2023, and up 1.324 million on the week and 2.293 million on the year.
That rise is partially due to a combination of slower consumer demand caused by weather and the faster than a year ago pace of production.
Ethanol production averaged 1.054 million barrels a day, 8,000 less than the previous week, but 44,000 more than this time last year.
Iowa State University’s Center for Agricultural and Rural Development says projected operating margins fell into negative territory to start 2024, roughly at the same levels as the start of 2023, indicating losses for the average Iowa plant.
The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders did see a solid week-to-week improvement, but the volume of gasoline supplied to the market moved lower.
Ethanol exports averaged 95,000 barrels a day, a drop of 62,000 from the prior week.
The USDA’s next corn for ethanol use estimate is out February 8th.
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Author: John Perkins