Sufficient Inventory Plunges the U.S. Ethanol Prices
- 30-Nov-2022 10:57 AM
- Journalist: Peter Schmidt
New York- The Ethanol prices in the U.S. market declined towards the end of the fourth week of November as the feedstock availability was satisfactory to fulfill the demand. According to the data published by the U.S. Energy Information Administration, the Ethanol stocks improvised as the inventories were stable in the domestic market. According to the United States Department of Agriculture's report on supply and demand projections, corn and soybean supplies were marginally increased due to higher output predictions. On the week ending November 25th, 2022, the final prices of Ethanol in the U.S. market ranged between USD 820-870 per M.T., FOB Texas.
The demand for Ethanol blended in the U.S. market increased with time, proportionally raising the production of the product in the domestic market. E15, consisting of 15% Ethanol and 85% fuel, is a higher Ethanol-Gasoline blend that will be made accessible state-wide under proposed U.S. legislation. According to a letter from a collaboration of trade organizations representing the oil, renewable fuel, and agricultural industries, a partnership will be made. In the U.S., groups like the American Petroleum Institute (API), the Renewable Fuels Association, and the National Farmers Union have come together, urging them to pass legislation that would effectively remove limits on the sale of E15. According to the United States Department of Agriculture, Illinois' average corn yield is anticipated to reach a record 215 bushels per acre, an increase of 13 bushels from previous years.
Ample feedstock availability with domestic producers and abundant inventories have led to high Ethanol production. According to the data of the U.S. Energy Information Administration, an increment of approximately 7% was witnessed in Ethanol production. Biofuel production is the major field requiring Ethanol as the feedstock, impacting the production quantity. As per ChemAnalyst, the prices of Ethanol are anticipated to incline further in the domestic market.