U.S. ethanol production, stocks, and exports were all above recent levels. Producer margins are solid. U.S. ethanol production hit a more than one-month high.
The U.S. Energy Information Administration says production averaged 1.094 million barrels per day, up 29,000 on the week of October 15 thanks to a larger supply of new crop corn as harvest catches up after early delays, but down 18,000 on the year.
The Iowa State University Center for Agricultural and Rural Development says the estimated operating margin for the average Iowa plant improved, supporting a big sector of domestic corn demand.
Ethanol stocks of 24.558 million barrels were 616,000 more than the previous week and 2.639 million above a year ago.
The Renewable Fuels Association says net inputs of ethanol purchased by refiners and blenders dipped fractionally, even as the volume of gasoline supplied to the market reached an eight-week high.
Ethanol exports averaged 132,000 barrels per day, rising 11,000 from the week before and 2,000 from last year.
EDITOR’S TAKE:
More new crop corn going into ethanol production is a positive for corn markets. It will be interesting to see whether USDA’s crop estimate, or the 2026 Crop Tour estimate, is the most accurate. USDA, as you might recall, is now forecasting a near record crop, while the Crop Tour estimate is much lower. Whoever is correct will have a big influence on price in one direction or the other. Thus, the overall impact of increased use for ethanol is also dependent upon which estimate is the most accurate.
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