U.S. ethanol production averaged 980,000 barrels per day last week, the lowest since early May, according to the Energy Information Administration. This was down 59,000 barrels from the previous week, as some plants idled for maintenance after the summer driving season, as per brownfieldagnews.
However, production remains up 79,000 barrels on the year, with producers encouraged by strong margins.
The Center for Agricultural and Rural Development at Iowa State University reports that operating margins for the average Iowa ethanol plant continued to strengthen, reaching their highest levels since late 2021. This improvement is attributed to robust demand and relatively low corn prices.
In contrast, the Renewable Fuels Association reveals that net inputs by refiners and blenders decreased to a ten-week low, despite a slight increase in the volume of gasoline supplied.
Ethanol stocks were reported at 21.681 million barrels, marking an increase of 510,000 barrels compared to the previous week’s nearly two-year low. Nevertheless, this inventory remains 820,000 barrels lower than the levels observed in mid-September 2022.
Ethanol exports experienced a notable upswing, reaching their highest levels since late July, averaging 109,000 barrels per day. This represents an increase of 41,000 barrels compared to the previous week.
The next corn for ethanol use estimate from the U.S. Department of Agriculture (USDA) is scheduled for release on October 12th, providing further insight into the outlook for ethanol production and its relationship with corn utilization.
