Ethanol Blog

Ethanol supplies moved to a 10-week low at the end of last week. The combination of increased ethanol demand by refiners and blenders and lower production through the week led to the drop in inventory levels.

Total ethanol supplies ell 4.2 million gallons for the week. The biggest shift in inventory was seen in both East Coast and West coast regions. This accounted for a reduction of 21 million gallons.

Supply building was seen through the Midwest and Gulf Coast regions. This is also creating a shift in price levels through the regional areas. Ethanol production at the end of last week decreased 1.2% for the week with 420,000 gallons less per day produced through ethanol plants. Current production levels are 1% less than year-ago levels.

There is uncertainty about just how much support will be seen through ethanol markets and overall ethanol demand during the rest of September and into October. This could limit additional inventory decreases in the coming weeks.

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

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