Ethanol Blog

Spot ethanol prices advanced in early trade Wednesday on worries about tight supply despite data showing domestic inventories edged up last week while demand eased.

Energy Information Administration said ethanol stocks rose 100,000 bbl to 17.5 million bbl while implied demand fell 24,000 bpd to 817,000 bpd.

A trader said the data was bullish because the stock build came after eight straight weeks of decline that pushed supply to a 15-1/2 month low during the week-ended March 22.

"Stocks are still very low," said the trader. "This was a bullish report that shows the market is very tight."

George Orwel can be reached at george.orwel@telventdtn.com.

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