US Ethanol Inventory Rises

Build in Ethanol Supply Pushes US Stocks to 39-Week High

OAKHURST, N.J. (DTN) -- Domestic ethanol inventories increased for the first time in three weeks on Jan. 29, rising to the highest level in 39 weeks as demand for the fuel declined nearly 1% and production edged higher, data released by the Energy Information Administration on Wednesday, Feb. 3, shows.

Blending activity, a measure of demand, decreased for the first time in four weeks, down 7,000 barrels per day (bpd) to 778,000 bpd in the week profiled, 12.4% below the corresponding week in 2020, data show. Blending activity during the four weeks ended Jan. 29 averaged 773,000 bpd, 97,000 bpd or 11.1% below the comparable year-ago period.

Midwest PADD 2 blending demand edged up 3,000 bpd on the week while West Coast PADD 5 demand fell by a like amount, the data show. For the four weeks ended Jan. 29, EIA reports PADD 2 blending activity 21,000 bpd below year earlier while PADD V activity is down 23,000 bpd.

Total ethanol plant production increased 3,000 bpd in the week ended Jan. 29 to 936,000 bpd, 13.4% lower than the corresponding week in 2020. Four-week average output dropped 125,000 bpd against a year ago to 938,000 bpd.

At 24.316 million bbl, overall ethanol supply in the United States increased 714,000 bbl to mark the highest level since the week ended May 1, 2020, at 25.612 million bbl and 3.4% above the same week a year ago.

EIA reported East Coast PADD 1 was drawn down 138,000 bbl to 8.111 million bbl, 3.6% lower than supply on hand this time last year while Midwest PADD 2 supply gained 65,000 bbl to 7.976 million bbl, down 2.4% versus the end of January 2020.

At the Gulf Coast PADD 3, stocks increased for the first time in four weeks, rising 773,000 bbl to a 36-week-high 5 million bbl, more than 28% above year ago while stocks along the West Coast PADD 5 stocks added 25,000 bbl to 2.866 million bbl.