Ethanol stocks climb higher
The U.S. ethanol supply grew again last week.
The U.S. Energy Information Administration says stocks swelled for the fifth week in a row, hitting a near two year high at 25.854 million barrels, an increase of 1.378 million on the week and 1.538 million on the year.
The Renewable Fuels Association says net inputs by ethanol refiners and blenders were the highest in five weeks, even as the volume of gasoline supplied to the market fell by more than 3%. Both remained above last year’s levels.
Production averaged 1.041 million barrels a day, up 6,000 from the week prior and 105,000 above the week ending January 29th, 2021.
Iowa State University’s Center for Agricultural and Rural Development says ethanol margins have fallen into negative territory, which would discourage production unless demand improves and stocks decline.
The USDA says Midwest ethanol prices were lower last week.
The USDA’s next corn for ethanol use estimate is out Wednesday, February 9th at Noon Eastern/11 Central.