Ethanol Stocks at 27-Week High

EIA: Ethanol Stocks at 27-Week High as Demand Hits 25-Week Low

OAKHURST, N.J. (DTN) -- Total domestic ethanol inventories climbed to a 27-week high in early December as implied demand eroded further, the latest Energy Information Administration data released Wednesday, Dec. 9, show.

Blending activity, a measure of demand, tumbled 37,000 barrels per day (bpd) to 755,000 bpd in the week ended Dec. 4, the lowest level since the last week of May while 12% lower than the same week in 2019, data show. Blending activity during the four weeks ended Dec. 4 averaged 793,000 bpd, 112,000 bpd below the comparable year-ago period.

At 22.083 million barrels (bbl), domestic ethanol supply increased 843,000 bbl in the week profiled, marking the highest level since May 29 and a 1.4% year-over-year supply increase.

EIA reported East Coast PADD 1 posted a third straight weekly build, up 248,000 bbl to a 25-week high 6.878 million bbl while Midwest PADD 2 supply increased a fourth consecutive week, up 365,000 bbl to 7.526 million bbl, the highest level since May 8.

At the Gulf Coast PADD 3, stocks gained nearly 200,000 bbl to 4.278 million bbl and stocks along the West Coast PADD 5 stocks added 31,000 bbl to 2.967 million bbl.

Ethanol plant production jumped 17,000 bbl or 1.7% to 991,000 bpd in the week ended Dec. 4, marking the highest level since March 20 but 7.6% lower than the corresponding week in 2019. Four-week average output dropped 77,000 bpd against year ago to 979,000 bpd.