Economist expects sustained strong ethanol market
An ag economist says ethanol refiners might break the single week production record soon.
Ben Brown is with the University of Missouri’s Food and Agricultural Policy Research Institute.
“Current ethanol prices are supporting ethanol margins and really encouraging ethanol facilities to produce as much ethanol, to run as much corn through those facilities as possible,” he said.
Refiners produced the second largest production total two weeks ago at one-million, one hundred and seven thousand barrel a day, and while production fell last week, Brown expects the increased production to be sustained.
“The ethanol prices are trading at it’s highest level since back in March of 2014,” he said. “So, this has been something that has provided a great incentive for ethanol producers to really increase production and keep it as a sustained rate.”
The U.S. Energy Information Administration said ethanol production has been higher than the pre-pandemic year of 2019 for the last six weeks in a row.