Ethanol production climbs as stocks tighten
U.S. ethanol production bounced back last week as plants came back online following the previous week’s bitterly cold conditions and heavy snow in the Midwest.
The U.S. Energy Information Administration says production averaged 849,000 barrels a day, up 191,000 on the week, but down 230,000 on the year because of continued slower blending demand linked to COVID-19 and tighter margins due to higher corn prices.
The Renewable Fuels Association says net inputs by refiners and blenders and the volume of gasoline supplied to the market both improved from the week before but remained well below year ago levels.
U.S. ethanol stocks hit a twelve-week low at 22.425 million barrels, a decrease of 360,000 on the week and 2.539 million barrels on the year.
The USDA says cash corn prices in the Midwest were mostly higher last week, while ethanol prices were up.
The USDA’s next corn for ethanol use estimate is out Tuesday, March 9th at Noon Eastern/11 Central.