Ethanol Blog

Ethanol futures moved lower with active pressure once again developing across the complex on Wednesday. The lack of support in the market came following several days of moderate to strong buying activity based on previous inventory reductions. The EIA report released Wednesday morning posted a rebuild of inventory levels at the end of last week. This comes after hitting a three-week low the previous week. The expectation that production of ethanol is growing due to the lower corn prices was confirmed as overall production increased 882,000 gallons per day. Production levels are currently 4.4% over year-ago levels, with the softer corn prices likely to spur additional late summer production in places where corn is available. Total ethanol inventory levels are 701 million gallons. This is still 10.4% less than year ago levels, and may continue to keep stocks tighter compared to 2012.

Rick Kment can be reached at rick.kment@telventdtn.com

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