Ethanol production expands 2%, first build in 8 weeks

In Washington, D.C., ethanol production expanded by 18,000 barrels per day (b/d), or 2.0%, to 923,000 b/d, equivalent to 38.77 million gallons daily and the first build in eight weeks, according to EIA data analyzed by the Renewable Fuels Association. However, production was 1.9% below the same week last year and 9.8% under the 2019 level.

The four-week average ethanol production volume decreased by 1.7% to 933,000 b/d, equivalent to an annualized rate of 14.30 billion gallons (bg).

Ethanol stocks shrank 3.4% to a 13-week low of 20.4 million barrels. Stocks were 2.0% above the year-ago level but 9.4% below the same week in 2019. Inventories tightened across all regions except the Rocky Mountains (PADD 4).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, increased 0.3% to 9.61 million b/d (147.29 bg annualized). Gasoline demand was 14.5% above a year ago but 2.0% less than the same week in 2019.

Refiner/blender net inputs of ethanol declined 2.2% to 906,000 b/d, equivalent to 13.89 bg annualized and the lowest volume since the beginning of June. Net inputs were 9.2% above a year ago but 2.6% less than the same week in 2019.

There were zero imports of ethanol recorded after 33,000 b/d hit the books the prior week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of July 2021.)