U.S. ethanol production, stocks decline
U.S. ethanol production dropped last week.
The U.S. Energy Information Administration says production averaged 994,000 barrels a day, falling below a million barrels a day for the first time since early last October, with some plants going idle or temporarily halting production due to a combination of margins and winter weather. That’s down 47,000 barrels on the week, but up 57,000 on the year, when production was limited by demand uncertainties caused by the pandemic.
Iowa State University’s Center for Agricultural and Rural Development says margins moved slightly higher last week, but generally remain below the cost of production.
With that week to week decline in production, the domestic supply backed off from the recent near two-year highs to 24.799 million barrels, a decrease of 1.055 million from the previous week, but an increase of 1.003 million from last year.
The USDA says Midwest ethanol prices were mostly higher last week.