Ethanol Stocks Climb to Record High

OAKHURST, N.J. (DTN) -- Ethanol supply in the United States increased for a fifth straight week in the week ended July 26, up 779,000 barrels (bbl) to a 24.468-million-bbl record high, building despite another decline in domestic plant production that fell to the lowest level since late April, the Energy Information Administration reported on Wednesday, July 31.

EIA data shows ethanol stocks again eased in the PADD 2 Midwest producer region, down 15,000 bbl to 7.872 million bbl, albeit an 8.2% year-over-year supply surplus.

Ethanol inventory was mixed in the destination markets, with PADD 1 East Coast supply down 25,000 bbl to 7.335 million bbl, 5.2% lower than during the comparable week a year ago. PADD 3 Gulf Coast inventory increased 960,000 bbl last week to 6.016 million bbl, 42.9% more than year ago, with PADD 5 West Coast stockpiles down 142,000 bbl to 2.914 million bbl, 21% above year ago.

Agency data showed a second weekly decrease in output at U.S. production plants, down 8,000 barrels per day (bpd) or 0.8% in the week ended July 26 to 1.031 million bpd, the lowest production rate since the week ended April 26. Plant output is down 33,000 bpd, or 3.1%, against a year ago. During the four weeks ended July 26, U.S. plant production averaged 1.046 million bpd compared to a 1.059 million bpd production rate during the comparable period a year ago.

Net ethanol inputs by refiners and blenders continued higher, up 17,000 bpd, or 1.8%, to 959,000 bpd, 1.4% more than the same week in 2018. During the four weeks ended July 26, the ethanol blend rate averaged 939,000 bpd, which compares with the year-ago pace of 933,000 bpd.

(BM/AG)

Copyright 2019 DTN/The Progressive Farmer. All rights reserved.