Ethanol production hits 25 week low

Source: By Helena Tavares Kennedy, Biofuels Digest • Posted: Tuesday, October 23, 2018

In Washington, D.C., ethanol production averaged 1.011 million barrels per day (b/d)—or 42.46 million gallons daily, with weekly output contracting to 29,000 b/d for a 25-week low, according to government data released and analyzed by the Renewable Fuels Association. The four-week average for ethanol production sank to the lowest point in 23 weeks at 1.026 million b/d, yielding an annualized rate of 15.73 billion gallons.

Stocks of ethanol nudged 0.4% higher to 24.1 million barrels. That is only the second time in history to breach 24 million barrels in reserve (a record 24.3 million barrels was logged March 9). There were zero imports following 71,000 b/d recorded the prior week—the largest weekly imports logged since the last week of 2012. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of August 2018.)

Average weekly gasoline demand increased 1.1% to 9.182 million barrels (385.6 million gallons) daily. This is equivalent to 140.76 billion gallons annualized. Refiner/blender input of ethanol picked up by 2.2%, expanding to a 6-week high of 933,000 b/d—equivalent to 14.30 billion gallons annualized. Expressed as a percentage of daily gasoline demand, daily ethanol production decreased to 11.01%.