News

Ethanol production up on week, stocks drop

U.S. ethanol production has averaged less than a million barrels a day for the fifth consecutive week, the longest stretch below that mark since late 2016.

The U.S. Energy Information Administration says production last week averaged 996,000 barrels a day, up 25,000 on the week, but 28,000 lower than this time last year.

Margins have improved, but the industry is concerned about demand because of EPA policy on exemption waivers for small oil refineries, which is currently the subject of a court challenge by renewable fuel and commodity groups.

Stocks were down 697,000 barrels on the week at 21.364 million, the second lowest supply level this year.

The USDA’s next corn for ethanol use estimate is out November 8th.