Ethanol Blog

Ethanol futures posted moderate losses in nearby contracts following a rebuild of ethanol inventory levels late last week. This was reported in the weekly EIA report. Total ethanol stocks increased 2.9% or 693 million gallons at the end of last week. This comes at the same time that overall ethanol production slipped lower.

The reversal of the previous week's draw-down in inventory levels seems to be setting an every-other-week pattern through the early summer.

This could create significant questions about just how much overall ethanol demand will develop through the rest of the summer, and potentially erode price support even further. July futures lost 2.6 cent per gallon, closing at $2.474 a gallon, while corn and RBOB gasoline prices posted moderate to strong support.

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