ALTERNATIVE ENERGY . U.S. ethanol production fell again in the latest week, the government said on Wednesday, as high corn prices raised producer costs and high gasoline prices cut into demand for fuel.
Ethanol output totalled 898,000 barrels per day for the week ending April 8, down 4,000 bpd from the prior week, the Energy Information Administration said Wednesday.
It was the third straight weekly decline in production but output remains well higher than it was a year ago.
Ethanol stocks climbed 455,000 to 20.52 million barrels, EIA said in its weekly petroleum report.
Ethanol prices have been rising as corn prices climb, and prices of distillers grains, a byproduct of ethanol production, also have risen. But profit margins remain under pressure, which could be contributing to slowed production.
"Corn prices are definitely a problem, but so far, DDG (distillers grains) values have been rising as have ethanol prices, and mostly offsetting the rise in corn," said Tom Waterman, ethanol expert and published of The Ethanol Monitor. "Margins remain healthy for the time being," said Waterman.
Ethanol output totalled 898,000 barrels per day for the week ending April 8, down 4,000 bpd from the prior week, the Energy Information Administration said Wednesday.
It was the third straight weekly decline in production but output remains well higher than it was a year ago.
Ethanol stocks climbed 455,000 to 20.52 million barrels, EIA said in its weekly petroleum report.
Ethanol prices have been rising as corn prices climb, and prices of distillers grains, a byproduct of ethanol production, also have risen. But profit margins remain under pressure, which could be contributing to slowed production.
"Corn prices are definitely a problem, but so far, DDG (distillers grains) values have been rising as have ethanol prices, and mostly offsetting the rise in corn," said Tom Waterman, ethanol expert and published of The Ethanol Monitor. "Margins remain healthy for the time being," said Waterman.
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