EIA: Ethanol Output Sinks 5.1% to Lowest Level in 19 Months

Source: By Progressive Farmer Staff • Posted: Thursday, September 29, 2022

OAKHURST, N.J. (DTN) — Ethanol production in the United States through Sept. 23 took another sharp downturn, while blender inputs, a measure of demand, climbed for the first time in over a month, according to data released Wednesday, Sept. 28, by the Energy Information Administration.

Overall domestic ethanol production dropped for a third week last week, tumbling 46,000 barrels per day (bpd) to 855,000 bpd, the lowest level since the week ended Feb. 19, 2021, when output averaged 658,000 bpd while down 6.5% from this time last year. A 51,000-bpd or 6% reduction in Midwest ethanol production to 799,000 bpd led the decline.

EIA data show blending activity jumped for the first time in six weeks, surging 32,000 bpd to a five-week high 911,000 bpd, just above the same week in 2021.

Refiner and blender net inputs along the East Coast PADD 1 jumped 16,000 bpd to 329,000 bpd last week while 9,000 bpd higher in the Midwest PADD 2 to 249,000 bpd, up 3,000 bpd in Gulf Coast PADD 3 to 152,000 bpd as of Sept. 23 and up 2,000 bpd along the West Coast PADD 5 to 149,000 bpd.

Total ethanol inventory in the U.S. increased after four weekly draws, up 190,000 barrels (bbl) to 22.691 million bbl last week, 12.4% higher than the same week in 2021.

East Coast ethanol inventory held higher, up 470,000 bbl to a five-week high 7.651 million bbl, while Midwest stocks again declined, down nearly 200,000 bbl as of Sept. 23 to 7.907 million bbl, the lowest level since the week-ended Nov. 5, 2021.

Gulf Coast ethanol inventory gained a second week, adding 69,000 bbl to a four-week high 3.847 million bbl while West Coast stocks fell a second week, down 130,000 bbl to 2.942 million bbl.

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