Ethanol Blog

Spot Ethanol Prices Plunge on Bearish Supply, Demand Outlook

By George Orwel , DTN Energy Reporter

Spot ethanol prices spiraled downwards in a thinly traded session early Friday after a recent supply squeeze in Chicago abated, and on trader expectations domestic ethanol production would increase in the coming weeks while demand is seen falling, sources said.

"The market is weak and not well tested," said another trader. "You look at the DOE numbers and you see production is building while gasoline demand is coming off on a seasonal basis. But the biggest reason for the selloff in Chicago is they took care of the squeeze that was there."

George Orwel can be reached at


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