US ethanol production averaged 1.032 million b/d in the week ended December 29, down 

58,000 b/d from the prior week, Energy Information Administration data showed Thursday. 

Compared  with  the  same  week last  year,  production was 11,000 b/d, or 1.05%, higher. 

Production was lower than market expectations, and the lowest production in 11 weeks sinc

e the week ended October 13 when it was 1.019 million b/d. 

Data was delayed by one day due to the New Year's Day holiday on Monday. 

Despite  the  fall  in production total stockpiles rose, reversing the recent three week trend. 

Inventories increased 588,000 barrels to 22.619 million barrels. The increase was on the hi

gh end of market expectations. Total inventories were 3.941 million barrels above last year's 

level. 

The  Midwest saw the largest stock level increase gaining 616,000 to 8.361 million barrels, 

1.541  million  barrels higher than the same week last year. The Midwest hosts most of the 

ethanol  plants  in  the  US and Kinder Morgan's Argo, Illinois, terminal, the busiest hub of 

ethanol  trade.  High  stocks in the region have weighed on prices the past several weeks, 

coupled with slower  gasoline demand. 

The East Coast saw a 99,000 barrel increase to 7.013 million barrels and the Gulf Coast she

d 66,000 barrels to 4.329 million barrels.