EIA: Ethanol Blending Down Again

OAKHURST, N.J. (DTN) -- Energy Information Administration data show domestic ethanol inventories held higher, rising to a 21-week high amid further decline in demand while output, though lower, continued above the 1 million barrels per day (bpd) level for a 10th straight week through July 16.

Blending activity dropped a second week, down 9,000 bpd or 1% to 907,000 bpd, the lowest level since the first week of June. Blending activity during the four weeks ended July 16 averaged 927,000 bpd, 4,000 bpd below the prior four-week period.

Midwest PADD 2 blending demand continued lower for a third week, down 4,000 bpd in the period profiled while at the Gulf Coast demand declined a second week, down 1,000 bpd last week. For the four weeks ended July 16, EIA reports PADD 2 blending activity was at 254,000 bpd while PADD 3 activity was 151,000 bpd.

Domestic ethanol plant production fell for a second week, falling 13,000 bpd or 1.2% to a five-week low 1.028 million bpd. Four-week average output was at 1.048 million bpd, down 5,000 bpd from the four-week average the prior week.

EIA reported PADD 2 ethanol plant production continued lower for a second week, down 13,000 bpd to 980,000 bpd as of July 16, the lowest level since the week ended June 11.

Total ethanol inventories added 1.384 million bbl to 22.518 million bbl last week, the highest level since the week ended Feb. 19 amid builds across the PADDs.

East Coast PADD 1 ethanol inventories rose for the first time in three weeks, up 316,000 bbl to an 11-week high 6.909 million bbl while Midwest PADD 2 stocks held higher a second week, up 731,000 bbl to 8.471 million bbl, the highest level since Feb. 28, 2020 at 8.645 million bbl.

West Coast PADD 5 supply rose 97,000 bbl to 2.743 million bbl and at the Gulf Coast PADD 3 stocks gained 214,000 bbl to a five-week high 4.055 million bbl.