Houston — US ethanol production averaged 1.070 million b/d in the week that ended Aug

ust 24,  down  3,000  b/d  week  on week, Energy Information Administration data showed 

Wednesday. 

Output in the most recent reporting week rose 28,000 b/d or 2.69% compared with the ye

ar-ago week. Production for the week that ended August 24 was within market expectations. 

Recent tumbles in feedstock corn prices have kept margins afloat, allowing plants to maintain 

high output. 

Stocks fell 198,000 barrels to 23.061 million barrels, with the focus on a drawdown on the

 Gulf Coast. Inventories were 1.758 million barrels higher than in the same week last year. 

The stock decline was within market expectations. 

The Gulf Coast saw a 301,000-barrel decrease, backing away from all-time highs set in the 

previous two weeks. The Gulf Coast is the most common origin for ethanol exports from the 

US and sources said the draw was linked to a vessel departing for the Arabian Gulf. The 

vessel had been expected to depart earlier, but how the loading was reported to the EIA may 

have delayed the stock draw until Wednesday's data release. 

"That boat was going out to the Arabian Gulf, at least 500,000 barrels," said a broker. 

"There's debate that some locations meter the product as it goes on the ship and some 

locations where it doesn't get metered until the whole boat is loaded out." 

The Rocky Mountain region saw the only other decline in inventory. As the smallest storage 

region, changes in inventories there have less effect on the market. 

The Midwest added 92,000 barrels as plants added to on-site storage ahead of seasonal 

maintenance. The Midwest is host to the largest number of ethanol plants across all US 

regions. With turnarounds approaching, plants need to keep product on hand to meet 

commitments. 

Stocks on the West Coast rose 17,000 barrels, with the EIA reporting imports for the first 

time since December 1, 2017. The West Coast is the most common destination for imports 

as Brazilian sugarcane-based ethanol generates both D5 renewable identification numbers 

(RINs) and Low Carbon Fuel Standard credits under California's LCFS. The West Coast 

imported 8,000 b/d in the most recent week, in line with expectations.