Ethanol Production Increases and Stocks Decline
Sep 20, 2018
Ethanol Production Increases And Stocks Decline; Green Plains To Cut Production By 20%
For the week ending on Sep 14, production of ethanol rose to 1.051 million barrels per day, up 31,000 barrels from last week which was a five-month low. Stockpiles of the biofuel were reported to have drawn down to 22.746 million barrels, down 148,000 barrels from the previous week. Green Plains, one of the largest producers of ethanol in the US, announced yesterday that they will be idling their two of their plants in Iowa, Superior and Lakota, and their Fairmont, MN plant will run at 50%. Annually, these 3 plants represent 1.48 billion gallons of production, 20% of Green Plains’ total output. Weak margins and the ongoing trade war with China were the cited reasons for the decision.
Export Sales Announcements
Export sales of 148,590 metric tons of corn for delivery to Mexico during the 2018/2019 marketing year.
Export sales of 11,430 metric tons of corn for delivery to Mexico during the 2019/2020 marketing year.
The US Is Now The Top Supplier Of Soybeans To Europe
Following a trade deal negotiated by President Trump with leaders from the EU in July, the United States is now the #1 supplier of soybeans to Europe, surpassing Brazil. In the 12 weeks since the deal was signed, US origin beans represent 52% of all soybeans imported to the EU. Imports to the EU in this time period were up 133% from the previous year. The deal between the EU and the US included more soybean imports by the Europeans in exchange for European cars to be free from US tariffs.
Corn, Soybean, and Wheat Exports Rise On Renewed Bargain Buying
Sales of new crop corn were reported at 1,383,700 MT for the week of Sep 7-13. This nearly doubles last week’s number of 774,000 MT. Countries reporting the largest purchases were Mexico, South Korea, Peru, and Japan.
New crop soybean sales were up nearly 33% from the previous week at 917,600 MT. Top buyers were Mexico, Indonesia, and Spain. Wheat sales as reported by the USDA were 468,400 MT, up 21% from last week and up 32% from the 4 week average. The biggest buyers were the Philippines, Indonesia, and Vietnam.
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