Ethanol output in US hits three-month low

Apr 25, 2024

By Farms.com

The US Energy Information Administration reports a significant downtrend in ethanol production, registering a 13-week low. The average production last week dropped to 954,000 barrels a day, marking a steady decline influenced by annual maintenance routines.

This trend reflects a broader context of reduced ethanol demand and shifting market conditions. The production rates have not only decreased by 29,000 barrels daily from the previous week but also show a year-on-year decline of 13,000 barrels.

The impact on ethanol stocks is equally notable, with inventories falling to a nine-week low of 25.733 million barrels. This is a slight decrease from the previous week, though stocks remain significantly higher compared to last year by over 3 million barrels.

In terms of market operations, the volume of ethanol purchased by refiners and blenders has remained stable, yet the overall gasoline market witnessed a nearly 3% decline in supply volume. Ethanol exports have also experienced a downturn, averaging 134,000 barrels per day, which is 41,000 less than the week before.

Despite these challenges, corn utilization for ethanol production is on track to meet or exceed expectations for the year, according to the USDA's projections. The next update from the USDA, expected on May 10th, is anticipated to provide further insights into the market trends and projections for the remainder of the marketing year.

As stakeholders brace for these updates, the industry remains focused on navigating through the seasonal and market-driven challenges it currently faces.

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.