May 25, 2017

Ethanol Production 5-17-2017

May 17th, 2017

Ethanol production rose from 1.006 million barrels per day to 1.027 in the latest week. Though it is normal for production to rally after late April this was larger than expected.

The new number is 8.3% over last year. That pulls up the year to date figure to 5.2% over last year. We are exceeding USDA’s goal of a 4.3% increase in corn for ethanol use.

Stocks did build in the latest week to the second highest ever. That is not a major problem by itself but is something to monitor. Margins are currently negative but the recent rebound in energy prices has likely pushed us back to breakeven.

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