Ethanol stocks shoot higher, production firms
U.S. ethanol stocks surged last week as production grew slightly.
The U.S. Energy Information Administration says stocks hit a fifteen-week high at 23.807 million barrels, a jump of 361,000 on the week and 2.584 million on the year.
That’s a signal of slower demand, which was backed up by two other important indicators.
The Renewable Fuels Association says net inputs by ethanol refiners and blenders was down 1.5% from the previous week and the volume of gasoline supplied to the market fell to a six-week low.
Production averaged 987,000 barrels a day, up 4,000 from last week and 54,000 from last year, but below the five-year average as some plants remain down for maintenance.
Iowa State University’s Center for Agricultural and Rural Development says margins are in positive territory for most active producers.