US ethanol production averaged 974,000 b/d in the week ended Nov. 27, 16,000 b/d lower on the week and down 70,000 b/d year on year, Energy Information Administration data showed Dec. 2.
Production was squarely within market expectations and a respite from the previous week's report, which showed production at the highest level since late March.
US ethanol stocks added 374,000 barrels to 21.240 million barrels, the fifth straight build and reflection of the continuing drop in demand for blending. The increase was within market expectations as well.
The largest increase came in the Midwest region, where stocks rose by 500,000 barrels. The Midwest is home to most of the ethanol plants in the US and is a significant trading hub.
East Coast inventories grew by 290,000 barrels, as interest in that hub for spot product has dwindled.
Gulf Coast stocks dropped by 356,000 barrels. The Gulf Coast is the most common origin for exports but also hosts large consumption hubs.
West Coast inventories fell 54,000 barrels despite the EIA reporting 9,000 barrels of imports on the week. Ethanol imports typically flow into California, as imported sugarcane-based ethanol from Brazil generates more value from carbon credits under the state's Low Carbon Fuel Standard.
The four-week rolling average of the refiner and blender net ethanol input fell by 11,000 b/d to 813,000 b/d, while the weekly average fell 21,000 b/d to 792,000 b/d.
The four-week rolling average of gasoline demand, represented by product supplied, fell 91,000 b/d to 8.280 million b/d. The weekly average decreased by 156,000 b/d to 7.973 million b/d.
The four-week rolling average of the ethanol blending rate, calculated by dividing the refiner and blender ethanol input by gasoline demand, fell to 9.82% from 9.84%.
