Ethanol production hits multi-year high

Source: By John Perkins, Brownfield • Posted: Monday, January 1, 2024

U.S. ethanol production shot higher last week and stocks surged.

The U.S. Energy Information Administration says production averaged 1.107 million barrels a day, a jump of 36,000 on the week and 144,000 on the year, for the highest weekly average since late October 2021.

That rise can be tied to producers trying to get ahead of the holiday slowdown.

The Iowa State Center for Agricultural and Rural Development says operating margins for the average Iowa plant bounced from previous week, creeping back into positive territory.

The Renewable Fuels Association says net inputs of ethanol purchased by blenders and refiners and the volume of gasoline supplied to the market both saw week to week increases.

Ethanol stocks hit a 35-week high at 23.517 million barrels, 611,000 more than the prior week, but 1.119 million less than a year ago.

Ethanol exports averaged 132,000 barrels a day, a drop of 64,000 from the week before.

The USDA’s next corn for ethanol use estimate is out January 12th.

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