ETHANOL SUPPLY JUMPS AS PRODUCTION FALLS
Ethanol stocks have grown for eight weeks in a row, while production dropped to a near three-year low.
The U.S. Energy Information Administration says the domestic ethanol supply of 25.815 million barrels was the largest since March 2023, an increase of 0.5% on the week and 2.9% on the year.
That rise in supply can be tied to slower demand caused by the bitterly cold conditions and winter weather that blanketed large parts of the U.S. last week.
Weather also had an impact on production, which averaged 818,000 barrels a day, the lowest since February 2021, and a drop of 236,000 from the previous week and 194,000 from a year ago.
Iowa State University’s Center for Agricultural and Rural Development says estimated operating margins for the average Iowa plant pulled back to near steady while remaining under this time last year.
The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders and the volume of gasoline supplied to the market saw big declines due to that slower consumer demand and movement issues.
Ethanol exports averaged 121,000 barrels a day, up 26,000.
The USDA’s updated corn for ethanol use projection is out February 8th.
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