OAKHURST, N.J. (DTN) -- Ethanol supply in the United States dropped more than 1 million barrels (bbl) in the first week of September despite a fourth straight week of decline in net inputs by refiners and blenders, a measure of demand, and a 1% gain in plant production, Energy Information Administration data released Wednesday, Sept. 11 shows.
Overall supply tumbled 1.302 million bbl in the week ended Sept. 6 to 22.499 million bbl, an 11-week low and moving from a near 5% year-over-year supply surplus the week prior to a near 2% deficit.
EIA data shows ethanol stocks fell for a second week in the PADD 2 Midwest producer region, down 215,000 bbl to 7.382 million bbl, a 42-week low while nearly 4% below the same week last year.
Ethanol inventory mostly dropped in the destination markets, with PADD 1 East Coast supply down 435,000 bbl to 6.872 million bbl in the week ended Sept. 6, a 68-week low and 11.5% lower than the same week in 2018. PADD 3 Gulf Coast inventory tumbled 712,000 bbl last week to 4.980 million bbl, a five-week low but 22% higher than last year, while PADD 5 West Coast stockpiles added 66,000 bbl to 2.878 million bbl, on par with a year ago.
Agency data showed output at U.S. production plants moved off a 21 week low, up 10,000 barrels per day (bpd), or 1%, in the week ended Sept. 6 to 1.023 million bpd, up 3,000 bpd against a year ago. During the four weeks ended Sept. 6, U.S. plant production averaged 1.024 million bpd compared to a 1.062 million bpd production rate during the comparable period a year ago.
Net ethanol inputs by refiners and blenders fell for a fourth week, sinking 22,000 bpd to 930,000 bpd, an eight-week low but 1.3% more than the same week in 2018. During the four weeks ended Sept. 6, the ethanol blend rate averaged 949,000 bpd, which compares with the year-ago pace of 938,000 bpd.
© Copyright 2019 DTN/The Progressive Farmer. All rights reserved.