Ethanol Blog

Ethanol at the Argo supply hub near Chicago lost 4.0 cents in spot value Thursday to $1.35 per gallon, weighed down by a bearish supply report that showed inventory at a two-year high and production for U.S. plants at a one-month high.

Jerrod Kitt, strategist for the Linn Group in Chicago believes the increase in supply was expected, saying "It's awfully hard to surprise the market when we had such a bearish report last week, a 7% build last week and a 1% build this week."

The Energy Information Administration showed a 200,000 bbl build in ethanol supply to 20.4 million bbl for the week-ended Jan. 16, with inventory at 3.4 million or 20% more than a year ago.

"If you just consider everything in a vacuum, it probably was a bearish report," Kitt added.

Myke Feinman can be reached at myke.feinman@telventdtn.com.

(ES)

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