Ethanol Slide Continues to Over 1 Year Low.

Ethanol losses continued below $2.2 per gallon for the first time since February 2022 Thursday, pressured by an overall negative tone in energy markets pressured by higher rates and inflation forcing recession. Price pressure came from news that Corn-for-Ethanol use was stronger than expected. Corn-for-ethanol use totaled 443.6 million bu. in January, according to USDA, topping traders’ expectations of 436.8 million bushels.

The USDA expects 5.25 billion bushels of corn to go to corn ethanol production in 2022-’23, below the January projection of 5.275 billion bushels. An estimated 5.326 billion bushels of corn went to corn ethanol production in 2021-’22, up from 5.028 billion bushels in 2020-’21.

According to EIA, fuel ethanol blending is expected to average 910,000 barrels per day in 2023, a forecast maintained from the December STEO and then increase to 920,000 barrels per day in 2024. Fuel ethanol blending averaged 910,000 barrels per day in 2022.