Karen Braun of Reuters reports that August marked the fifth consecutive month in which a new monthly ethanol export record was set. Braun writes:
Despite a jump in production, U.S. ethanol stocks dropped significantly last week, partly owing to a sharp rebound in gasoline demand, which neared three-year highs.
But record exports have been the factor keeping U.S. ethanol supplies in check over the last several months, even as output of the corn-based fuel additive set records of its own.
Plentiful, cheap corn and relatively low natural gas prices have supported profit margins for U.S. ethanol producers, which account for nearly 40% of annual U.S. corn use. Ethanol output over the last three months was record-high for the period, coinciding with a 20% slide in U.S. ethanol prices .
It was not clear if and when new ethanol production records could be set following the 2020 COVID-19 pandemic that choked off fuel demand, placing stress on the U.S. corn industry. […]
Analysts expect the U.S. Department of Agriculture on Friday to reconfirm its view that the in-progress 2024 corn harvest will be the second-largest on record behind 2023.
USDA’s September estimates pegged U.S. corn used for ethanol in 2024-25 to fall slightly from 2023-24, though this order may need to be flipped if ethanol production rates continue to shine through early next year.
Read more here.
