Ethanol Blog

Some Spot Ethanol Prices Rebound on Increased Buying Interest

By George Orwel , DTN Energy Reporter

U.S. spot ethanol prices rebounded in regional hubs in the Midwest, along the East Coast and the Texas Gulf Coast as buyers returned to the market this morning.

Traders said prices in these hubs were merely stabilizing after recent losses, with prompt transfer ethanol at the Argo hub near Chicago talked at $2.02 to $2.04 per gallon bid/ask for a 3 cents gain for the session.

Meantime, 2013 D6 Renewable Identification Numbers traded 2 cents lower at 25 cents and 26 cents on signs of rising U.S. ethanol production.

George Orwel can be reached at george.orwel@telventdtn.com

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Eddy Lahens 10/24/2013 | 5:01 PM CDT
Per EIA stats this week, production was 897k barrelsper day while refiner demand was 851kbpd. THis is a delta of 48k barrels PER DAY ( times 7 days equal 336k barrels).

Since Imports was ZERO and Total Industry Inventory for the week was only up 100K (15.5m vs 15.4m),
there is a gap of 226k ( 336k production over refiner demand minus inventory delta of +100K).

Where did 226K barrels go? Answer is : export. Exports are only accounted for monthly. The surprise then is that it is an adjustment to Total Industry Inventory.
So do not be caught if 15.5m inventory is really 15.27m (15.3m minus 226K).