EIA data shows US ethanol production climbs again, stocks build

24 Jan 2018 | Tim Worledge

US ethanol production reached 1.06 million barrels per day in the week ending January 19, the second consecutive increase in weekly production and a sign that the industry continues to produce at near-record levels, EIA data shows Wednesday.

Production levels continue to support corn values, with implied corn demand rising to 111.5 million bushels, comfortably above the levels needed to hit the USDA’s forecast for corn-to-ethanol demand of 5.525 billion bushels, as set out in the January WASDE.

However, stock levels have also continued to rise, with the overall US ethanol stock position jumping by 1.1 million barrels, a 5% increase on the week. The total stock level is now 10% higher than it was at the same time last year.

“It’s a brutal stocks number. I guess a combination of seasonal decline and weather decimating driving demand,” Kelly Herrick of Advanced Trading told Agricensus, with exports or margin cuts needed to prevent values caving in.

“So we need to find some exports or get margins ugly enough to slow production,” he said.