US ethanol production dips to seasonal low

USAgNet - 04/25/2024

Ethanol production in the United States has seen a consistent decline over the past three weeks, marking a significant drop to a 13-week low. Last week, the production averaged 954,000 barrels per day, the lowest rate since mid-January. This decrease represents a fall of 29,000 barrels daily from the previous week and 13,000 from the same period last year.

The drop in production is attributed to seasonal maintenance activities typically observed in the industry. Despite these decreases, the use of corn for ethanol remains robust, aligning with the USDA's projections for the current marketing year, which concludes at the end of August.

Ethanol stocks have also declined, reaching a nine-week low of 25.733 million barrels. This is slightly lower by 347,000 barrels from last week, yet still 3.027 million barrels above the levels recorded last year.

Additionally, the market for ethanol seems to be adjusting, with ethanol exports showing a notable decrease to 134,000 barrels per day, down by 41,000 from the previous week. Gasoline demand has also softened, with a nearly 3% dip in the volume supplied to the market.

As the sector navigates through these fluctuations, the industry's focus remains on maintaining a stable supply chain and adapting to market demands. The next set of detailed projections and market impacts will be available in the USDA's upcoming report on May 10th.

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