Spot ethanol prices at Kinder Morgan's Argo supply hub east of Chicago eased 1.0 cent to a $1.32 gallon better-than 10-month low following the release of bearish data showing a 900,000 bbl jump in domestic ethanol inventory to a 21.1 million bbl 8-1/2 month high during the week-ended Jan. 1.
Inventory in the Midwest region surged 500,000 bbl to 7.0 million bbl, the most since early March 2015. The large inventory build came as U.S. ethanol plants ratcheted higher production to 996,000 -- the third highest weekly rate on record, while blending demand plunged.
EIA showed refiner and blender net inputs tumbled 120,000 bpd to 787,000 bpd, the lowest activity since January 2014, during the week reviewed.
Brian L. Milne can be reached at email@example.com
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