Ethanol production rises again, adding to stocks

In Illinois, ethanol production rose again last week to 1.027 million b/d, 21,000 b/d higher than the previous week and more than 8% higher than during the same period last year. Demand remains stagnant, however, so increased production led to an increase in stocks for a total of 23.414 million barrels contrary to the market’s hopes that a stocks drawdown would help to support weakening prices. The Gulf Coast region saw the greatest increase in stocks while the East Coast region saw the largest drawdown. The blending rate on a four-week rolling average remains above 10%.