Houston — US ethanol production averaged 1.087 million b/d in the week that ended August 31, up 17,000 b/d week on week, Energy Information Administration data showed Thursday.
Output in the most recent reporting week rose 27,000 b/d, or 2.55%, from the year-ago week. Production for the week that ended August 31 was above market expectations.
Recent tumbles in feedstock corn prices have kept margins afloat, allowing plants to maintain high output.
Stocks fell 358,000 barrels to 22.703 million barrels, with a large drawdown on the Gulf Coast. Inventories were 1.587 million barrels higher than in the same week last year. The stock decline was larger than market expectations.
The Gulf Coast saw a 1.222 million-barrel decrease, backing away from all-time highs set in the previous two weeks. The Gulf Coast is the most common origin for ethanol exports from the US.
No other regions saw a draw in the week's report.
The Midwest added 181,000 barrels to 7.718 million barrels. The Midwest is host to the largest number of ethanol plants across all US regions. With turnarounds approaching, plants need to keep product on hand to meet commitments.
Stocks on the West Coast rose 498,000 barrels, with the EIA reporting imports for the second consecutive week, and only the second time all year. The West Coast is the most common destination for imports as Brazilian sugarcane-based ethanol generates both D5 renewable identification numbers (RINs) and Low Carbon Fuel Standard credits under California's LCFS. The West Coast imported 32,000 b/d in the most recent week.
East Coast inventories rose 162,000 barrels week on week, while the Rocky Mountains added 23,000 barrels.
The four-week rolling average of the refiner and blender net ethanol input was flat at 946,000 b/d, while the weekly average fell 7,000 b/d to 943,000 b/d. The four-week rolling average of gasoline demand, represented by product supplied, rose 97,000 b/d to 9.650 million b/d, while the weekly average slipped 165,000 b/d to 9.734 million b/d.
The four-week rolling average of the ethanol blending rate, calculated by dividing the refiner and blender ethanol input by gasoline demand, fell 0.10 percentage point to 9.80%.
