US - The latest data in relation to ethanol production and stocks suggests that US ethanol producers are continuing to take advantage of relatively inexpensive grains, despite five-year low gasoline prices.
The US Energy Information Administration reported that weekly ending stocks of ethanol hit a two-month high during the week ending 26 December.
At 18.09 million barrels, the latest stocks were the largest weekly volume since the middle of October, and up three per cent on the previous week, see below.
The stock situation follows record production in the previous three weeks, even though the pace of production slowed somewhat in the fourth week of December.
Last Wednesday’s Grain Market Daily reminded us that lower crude oil price doesn’t necessary mean low grain prices.
However, continued confidence in grain stocks this year, keeping prices down, could help to keep up pace of ethanol production and stocks up for some time.
TheCropSite News Desk