Ethanol Inventory levels have dropped 8.4 million gallons over the last week, according to the most recent EIA numbers released Wednesday. This pushed total supplies to 777 million gallons.
This is nearing a four-month low of ethanol stock levels, and continues to shape the pattern of reduced supplies while ethanol production is once again growing. Ethanol production increased 504,000 gallons per day in the last week, which is a three-week high. The gains in the ethanol production levels have pushed total weekly ethanol production to 34 million barrels a day. This is till a 9.4% decrease from year-ago levels.
The continued expectation of additional demand support for gasoline and ethanol during coming months is expected to keep inventory levels lower in the near future. The moves in corn prices will likely dictate further direction in ethanol production levels, but as ethanol margins improve, it is likely that additional production will come online through early summer.
Rick Kment can be reached at firstname.lastname@example.org