According to EIA data analyzed by the Renewable Fuels Association for the week ending July 8, ethanol production scaled back for the fourth straight week with output contracting 3.7% to 1.005 million b/d, equivalent to 42.21 million gallons daily and the lowest volume in 8 weeks. Production was 3.5% less than the same week last year and 2.0% below the five-year average for the week. The four-week average ethanol production volume decreased 1.3% to 1.039 million b/d, equivalent to an annualized rate of 15.93 billion gallons (bg).

Ethanol stocks ticked up 0.5% to a five-week high of 23.6 million barrels. Stocks were 11.7% higher than a year ago and 8.3% above the five-year average. Inventories built across all regions except the East Coast (PADD 1) and Midwest (PADD 2).

The volume of gasoline supplied to the U.S. market, a measure of implied demand, dropped 14.4% to 8.06 million b/d (123.59 bg annualized), the lowest weekly volume since Jan. 7. Demand was 13.2% less than a year ago and the five-year average.

Refiner/blender net inputs of ethanol declined 1.9% to 887,000 b/d, equivalent to 13.60 bg annualized and an 11-week low. Net inputs were 3.2% less than a year ago and 1.0% below the five-year average. Still, net inputs of ethanol accounted for 11.0% of gasoline supplied, the highest share on record.

There were no imports of ethanol for the eighth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of May 2022.)

By Tucker Allmer - The BARN

Tucker Allmer & the BARN are members of the National Association of Farm Broadcasting (NAFB), the Colorado FFA Foundation, the Colorado 4H Foundation, the Colorado Farm Show Marketing Committee, 1867 Club Board Member, Denver Ag & Livestock Club Member, the Weld County Fair Board, the Briggsdale FFA Advisory Council, Briggsdale 4H Club Beef Leader & Founder / Coordinator of the Briggsdale Classic Open Jackpot Show.