Ethanol production sinks to 3 week low: EIA

US ethanol production fell to its lowest in three weeks as the industry undergoes maintenance season, while ethanol stocks continued to fall, according to Energy Information Administration (EIA) data.

Domestic ethanol production for the week ended 9 April fell by 3.5pc to 941,000 b/d compared with the prior week, its lowest level since the week ended 19 March when it was 922,000 b/d. Nearly all of the losses came from the midcontinent, where output fell by 3.7pc to 895,000 b/d as plant maintenance season continues through May.

Year on year, production was higher by 65pc as government-mandated lockdown orders in response to the Covid-19 pandemic sharply reduced biofuel demand in early 2020.

Ethanol production was lower by 7.4pc compared with the same week of 2019, the last full year before the pandemic struck.

US ethanol stock levels fell by 0.6pc week on week to 20.5mn bl, marking the third straight week of draws. The Gulf coast led losses, with supply falling by 8.5pc to 4.1mn bl. West coast stocks rose by 15pc to 2mn bl, mitigating overall losses.

Compared with a year ago, stocks were lower by 25pc as weak demand then led to unwanted growth in ethanol stocks while plants worked to rein in production. Ethanol inventories were 9.5pc lower compared with the same week two years ago.

Implied gasoline demand rose by 1.9pc to 8.9mn b/d from the week before. Demand was 5.1pc lower compared with the same week two years ago.

Ethanol blending rose by 1.4pc to 890,000 b/d week on week. Blending from two years ago was higher than the latest reported week by 3.7pc.

By Thom Dwyer