EIA: Ethanol Stocks Plunged

Supplies Hit 11-Month Lows

WASHINGTON, D.C. (DTN) –- Ethanol supply in the United States moved sharply lower in the first week of June, while production reversed 52,000 bpd higher in line with stronger blending demand, according to supply data released midmorning by the Energy Information Administration.

Data shows domestic ethanol supply tumbled 751,000 bbl last week to 21.802 million bbl, while posting a deficit of 1.8% against the same week a year ago. Regionally, East Coast PADD 1 ethanol stocks fell 15,000 bbl to 7.240 million bbl in the week ended June 7, while holding a 2.7% deficit with the corresponding week a year ago. PADD 2 Midwest ethanol inventories fell 433,000 bbl to 7.862 million bbl, still 8.2% higher than a year ago. Data showed Gulf Coast PADD 3 ethanol supply continued 185,000 bbl lower to 3.971 million bbl, pressing stockpiles to the lowest level since August 2018. West Coast PADD V stocks dipped 111,000 bbl to 2.347 million bbl after building for four consecutive weeks.

EIA reported ethanol plant production gained 52,000 bpd or 5% to 1.096 million bpd, reversing up from a four-week low. According to the data, current ethanol output is 4.1% higher compared with the same week a year ago. Data also showed four-week average output at 1.067 million bpd, up 26,000 bpd from the same four-week period a year ago.

Blending demand reversed higher by 22,000 bpd to 953,000 bpd as of June 7 after reaching the lowest level in nearly a month the previous week. Blending demand for ethanol registered a 6,000 bpd or 0.6% gain against the corresponding week a year ago. During the four weeks ended June 7, blending demand averaged 946,000 bpd, a steady 13,000 bpd higher than the same four weeks in 2018.

(BM/CZ)