U.S. ethanol supply continues to rise
U.S. ethanol stocks have risen for four weeks in a row.
The U.S. Energy Information Administration says supplies of 24.476 million barrels are the largest since mid-May of 2020, up 884,000 on the week and 848,000 on the year.
That weekly stocks total includes the largest on-hand volume of ethanol on record in the Midwest, a sign of slower demand, even as gas prices rise.
The Renewable Fuels Association says demand signals last week were mixed, with net inputs by refiners and blenders moving lower while the volume of gasoline supplied to the market was higher.
Production averaged 1.035 million a day, 18,000 less than the previous week, but 90,000 more than a year ago.
Iowa State University’s Center for Agricultural and Rural Development says ethanol margins thinned again last week and the USDA says Midwest ethanol prices were mostly steady.
The USDA’s next corn for ethanol use estimate is out February 9th.