Ethanol Blog

Ethanol futures slipped lower at midweek after the latest weekly EIA report posted growing ethanol supplies at the end of last week. Although the full holiday weekend has not yet been accounted for in the latest data, the growth in total inventory levels by 12.6 million gallons from the previous week was enough to limit overall buyer support. August contracts posted the most aggressive pressure, falling 1.1 cents per gallon, moving to $1.625 a gallon. The rest of the complex was limited to fractional losses. Additional pressure in the ethanol market was curbed by the light to moderate support seen in corn prices as well as a strong post report rally in the RBOB gasoline market despite strong supply levels of gasoline at the end of last week. This could continue to create some moderate shifts in ethanol and gasoline prices through the end of the week.

(CZ)

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