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Ethanol output in US hits three-month low

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.


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Why did we turn this land in to pollinator habitat? We we rented this farm consisting of six fields this 23 acres was the most challenging. Nine acres of is a large sandhill with trees all along the North edge. Most years it wouldn't produce very much grain at all. So when we bought this farm we decided it was time to take that hill out of production and put it to good use. So we seeded it to pollinator habitat. Here's a look at it three years in, and it's looking better every year. There's a strong marestail seedbank out there, but the pollinator species are beating it back a little more each year. The grasses have really come on strong this year. And we have a neighbor who keeps some beehives on the habitat. Hope you enjoy taking a tour of our pollinator habitat!