US Ethanol Stocks Climb

US Ethanol Demand Down 2.1% on Week; Stocks Near 2-Year High

OAKHURST, N.J. (DTN) -- Domestic ethanol inventories held to the upside for a fourth consecutive week through March 25, climbing to the highest level in nearly two years on continued strong production met with weaker blending demand, the Energy Information Administration reported on Wednesday, March 30.

Overall ethanol production retreated from a nine-week high, down 6,000 barrels per day (bpd) to 1.036 million bpd through March 25. Still, output was up 7.4% above a year ago while four-week average output totaled 1.033 million bpd, up 84,000 bpd from the comparable four-week period in 2021.

According to the data, domestic ethanol production has been above 1 million bpd in 23 of the past 25 weeks.

EIA reports Midwest PADD 2 output declined from an 11-week high, down 6,000 bpd last week to 982,000 bpd. Output was 7.1% above the corresponding week a year ago.

U.S. refiner and net blender ethanol inputs fell again last week, down 18,000 bpd to a six-week low 847,000 bpd, off 4% versus the same week in 2021.

At the East Coast PADD 1, the blending rate decreased 3,000 bpd while both PADD 2 and Gulf Coast PADD 3 refiners and blenders reported declines of 5,000 bpd week-on-week.

Data show total ethanol inventories gained 381,000 barrels (bbl) to 26.529 million bbl, the highest level since the week ended April 17, 2020.

PADD 1 ethanol stocks increased a fourth week, gaining 469,000 bbl to 8.431 million bbl, the most since the second week of May 2020 while PADD 2 inventory rose 379,000 bbl to a four-week high 10.557 million bbl through March 25.

EIA data show PADD 3 ethanol stocks fell from a near 14-month high with the first draw in four weeks. PADD 3 stocks dropped 635,000 bbl to 4.364 million bbl last week while PADD 5 inventory rose a second week, up 156,000 bbl to a four-week high 2.808 million bbl.