Ethanol Production Increases on the Week, Down Year-over-Year

According to EIA data analyzed by the Renewable Fuels Association for the week ending September 30, ethanol production expanded 4.0% to 889,000 b/d, equivalent to 37.34 million gallons daily. However, production was 9.1% less than the same week last year and 8.7% below the five-year average for the week. 

The four-week average ethanol production volume declined 2.7% to 902,000 b/d, equivalent to an annualized rate of 13.83 billion gallons. 

Ethanol stocks drew down 4.4% to 21.7 million barrels, a low for the year. Still, stocks were 8.8% higher than a year ago and 1.9% above the five-year average. Inventories thinned across all regions except the Midwest. 

The volume of gasoline supplied to the U.S. market, a measure of implied demand, hiked up 7.3% to a 40-week high of 9.47 million b/d. 

Demand was 0.4% more than a year ago and 2.1% above the five-year average. Conversely, refiner/blender net inputs of ethanol slipped 1.6% to 896,000 b/d, equivalent to 13.74 bg annualized. 

Net inputs were 1.6% less than a year ago and 0.5% below the five-year average. There were no imports of ethanol for the fifth consecutive week.