U.S. spot ethanol prices were steady to higher in early trade after federal data showed nationwide supplies unchanged last week, though increased.
"You built production almost up to record highs, and you still aren't building inventory," said Jerrod Kitt strategist for the Linn Group in Chicago, Ill. "So we're doing something with this ethanol."
Production at domestic ethanol plants ramped up 15,000 bpd to 953,000 bpd, while 90,000 bpd or 10.4% above the year-ago output rate, Energy Information Administration data showed for the week-ended June 27. During the four-week period ended Friday, ethanol production averaged 952,000 bpd, 76,000 bpd or 8.7% higher than during the comparable year-ago period.
Total U.S. ethanol stocks at 18.2 million bbl were 2.8 million bbl or 18.2% above the comparable year-ago.
At Chicago, spot ethanol was pegged at a $2.10 to $2.14 bid/ask price, up 3.0cts on the day.
July ethanol barge at the New York Harbor traded at $2.22 gallon, up 3.0cts on the day.
Northern California was talked at $2.33 gallon, a gain of 3.0cts.
Myke Feinman can be reached at firstname.lastname@example.org.
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© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.