US ethanol production down as stockpiles climb: EIA

US ethanol production declined week-over-week, falling to 1.08 million b/d while stocks continued to increase in the week ending December 10, data published by the US Energy Information Administration (EIA) showed on Wednesday.

Production fell short again this week of analysts' expectations as many anticipated an increase between 10,000-20,000 b/d.

Over the course of the week, production suggested the consumption of 2.8 million mt of corn. 

The Midwest, responsible for over 90% of total US ethanol production, drove domestic week-on-week production loses for the week as it observed the only decline.

Ethanol stock levels increased by 419,000 barrels to 20.88 million barrels, compared with last week's 20.46 million barrels, the data showed.

The figure surpassed projections from analysts, which polled for a rise in stock inventories of 150,000 barrels.

The East Coast drove most of the increase with 86% of the reported ending stocks meanwhile, the only decrease by region was noted for the West Coast.

Margins, calculated with a model from Iowa State University, showed that estimated running costs for the average Midwest-based plant dropped 33 cents to $1.12 cents per gallon.

Corn prices continued to climb for the week however, averaging $5.98/bu, up from $5.90/bu recorded on December 3.

Finished ethanol prices, according to the data, dipped by 32 cents to $3.02/gallon from $3.34/gallon a week earlier.