* Output rises 3.4 pctfrom previous week
* Stockpiles edge higher, margins still weak
May 2 U.S. ethanol stocks edged higher in the
latest week as production jumped more than 3 percent, the Energy
Information Administration reported on We dnesday.
U.S. ethanol supplies were pegged at 22.2 million barrels,
up 1.7 percent for the week that ended April 27, as production
rose 3.4 percent to 894,000 barrels per day for the week -- the
highest level in three weeks, according to the EIA.
The surge marked the greatest week-over-week jump since
October and came despite general weakness in profit margins.
Linn analyst Jerrod Kitt said the output increase was likely
due in part to plants coming back online after spring
maintenance and pulled in part by a rebound in blender demand.
"Lackluster ethanol producer profitability could work to
restrain this typical seasonal rebound in production," Kitt
(Reporting by Carey Gillam in Kansas City; Editing by David