Ethanol production slumps as stocks swell
Ethanol production moved modestly lower last week as stocks hit a more than twenty-week high.
The U.S. Energy Information Administration says production averaged 1.048 million barrels a day, down 11,000 on the week, but up 113,000 on the year.
Iowa State University’s Center for Agricultural and Rural Development says margins did decline and ended the year well below the highs, but stayed above the cost of production.
The Renewable Fuels Association says the volume of gasoline supplied to the market was the lowest since February and net inputs by refiners and blenders hit a 45-week low, indicating slower consumer demand.
The domestic supply was the largest since late July at 21.359 million barrels, an increase of 683,000 from the previous week, but a decrease of 1.925 million from a year ago.
Corn for ethanol use is running ahead of last marketing year’s pace, with the USDA’s next projection out Wednesday, January 12th at Noon Eastern/11 Central.