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U.S. Ethanol Production and Stock Rallies Up Towards the End of Q1 2023
U.S. Ethanol Production and Stock Rallies Up Towards the End of Q1 2023

U.S. Ethanol Production and Stock Rallies Up Towards the End of Q1 2023

  • 09-Mar-2023 3:24 PM
  • Journalist: Nicholas Seifield

Texas (USA)- The US Energy Information Administration (EIA) recently released data regarding the total Ethanol production and the stock availability in the domestic market. While Ethanol blender inputs marginally decreased, production increased by 0.7%, continuing the current fluctuating pattern in Ethanol prices. With the rise in production rate in the country along with a moderate demand outlook from domestic and overseas markets, the prices of Ethanol varied and ranged between USD 710-760 per MT, FOB Texas towards the start of the third month of 2023 in the U.S. market.

A major facet governing the rise in stockpile is the decline in corn export volume in the foreign market. Argentina's corn and soybean production figures were drastically reduced by the USDA (United States Department of Agriculture), bringing them in line with most industry forecasts. End season stocks for U.S. grains are still extremely low. The domestic and international Ethanol manufacturers now mostly rely on South America for increased crop (corn) production and to cater to feedstock demand consequently raising the Ethanol production capacity.

An official with the Renewable Fuels Association informed the audience regarding the need to increase the biofuel production in Ethanol business meeting during an Ethanol symposium conducted in LaVista, Nebraska (USA). The event was planned to brainstorm and bring out new plans regarding the promotion of Ethanol based biofuel and increase the clean-fuel consumption approach. Furthermore, federal lawmakers are ready to submit a legislative fix with summer E15 (biofuel consisting of 15% ethanol) limits about to begin. Besides a proposal to grant petitions from eight states of Midwest to amend federal law to permit year-round E15 sales in certain jurisdictions were opened by the EPA (Environmental Protection Act) last week.

As per ChemAnalyst, Ethanol prices are anticipated to incline in upcoming weeks on the back of tending demand for biofuel in the native and international markets.  According to the administration, the U.S. corn supply will be greater than originally anticipated since Brazil's enormous crop will severely compete with the US export program.

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