By Farms.com
The US Energy Information Administration reports a significant downtrend in ethanol production, registering a 13-week low. The average production last week dropped to 954,000 barrels a day, marking a steady decline influenced by annual maintenance routines.
This trend reflects a broader context of reduced ethanol demand and shifting market conditions. The production rates have not only decreased by 29,000 barrels daily from the previous week but also show a year-on-year decline of 13,000 barrels.
The impact on ethanol stocks is equally notable, with inventories falling to a nine-week low of 25.733 million barrels. This is a slight decrease from the previous week, though stocks remain significantly higher compared to last year by over 3 million barrels.
In terms of market operations, the volume of ethanol purchased by refiners and blenders has remained stable, yet the overall gasoline market witnessed a nearly 3% decline in supply volume. Ethanol exports have also experienced a downturn, averaging 134,000 barrels per day, which is 41,000 less than the week before.
Despite these challenges, corn utilization for ethanol production is on track to meet or exceed expectations for the year, according to the USDA's projections. The next update from the USDA, expected on May 10th, is anticipated to provide further insights into the market trends and projections for the remainder of the marketing year.
As stakeholders brace for these updates, the industry remains focused on navigating through the seasonal and market-driven challenges it currently faces.