Ethanol Stocks Drop Again

EIA: US Ethanol Stocks Down 9th Week to 6 1/2-Month Low

CRANBURY, N.J. (DTN) -- Ethanol inventory in the United States was drawn down for the ninth consecutive week through June 19, according to the Energy Information Administration, declining 300,000 barrels (bbl) to a 21-million-bbl 6 1/2-month low, 500,000 bbl or 2.5% below a year ago.

The draw came with ongoing improvement in blending activity, with EIA reporting a 42,000-barrel-per-day (bpd) or 5.3% increase in net refiner and blender ethanol inputs to an 831,000-bpd 12-week high. Blending activity during the four weeks ended June 19 averaged 776,000 bpd, 168,000 bpd or 17.8% below the comparable year-ago period.

Improving driving demand continues to spur blending activity, with gasoline supplied to market surging 738,000 bpd to 8.608 million bpd during the week reviewed, down 858,000 bpd or 9.1% against a year ago, with implied gasoline demand the most since late March.

Ethanol plant production ramped up more than blending activity, up 52,000 bpd or 6.2% on the week profiled to 893,000 bpd while down 179,000 bpd or 16.7% against a year ago. Four-week average output is down 239,000 bpd or 22.3% against a year ago at 834,000 bpd, although 58,000 bpd or 7.5% above blending demand through June 19.