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Energy Ethanol US

US fuel stats and WASDE report show strong ethanol demand

DOE’s weekly US fuel stats showed gasoline and ethanol demand remaining extremely strong even with the end of the US driving season rapidly approaching. Production statistics were little changed for both grades, putting the focus on larger WoW stock draws totalling an impressive 3.7% for ethanol and 0.6% for gasoline.

The stats marked gasoline production up 5% YoY given a small weekly gain even with refineries already running near full capacity. Ethanol production was up 4% YoY with weekly output up 0.4%.

US corn prices plunged on Wednesday shortly after the DOE release as USDA’s WASDE showed a 7% rise MoM in projected end stocks given improved yields for the new marketing year. Ethanol is expected to consume an additional 25mn bu of corn relative to July’s forecast based on fresh EIA gasoline projections.

The US reported net gasoline imports of 239,000b/d over the week as imports continued to outstrip estimated export figures, further hiking US implied gasoline demand.

 

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