Slight increase in ethanol production as stocks decline
U.S. ethanol production moved modestly higher last week, while the supply tightened for the first time since October.
The U.S. Energy Information Administration says production averaged 935,000 barrels a day, up 1,000 on the week, but down 127,000 barrels on the year because of slower blending demand caused by lower travel linked to COVID-19 and higher corn prices reducing margins.
The Renewable Fuels Association says net inputs by refiners and blenders and the amount of gasoline supplied to the market were below the previous week and last year’s levels.
Stocks were 23.284 million barrels, a decrease of 220,000 on the week but an increase of 822,000 on the year because of that slow demand.
The USDA’s next corn for ethanol use estimate is out January 12th.