Ethanol Blog

Ethanol Futures Adjust Higher on Inventory Reductions

Rick Kment
By  Rick Kment , DTN Analyst

Ethanol futures prices continue to ratchet higher Wednesday as traders step into the market in front of the holiday weekend activity that is expected to develop over the coming days. The support seen in the EIA report released Wednesday morning posted the lowest inventory levels seen in 2016 and created some additional market support based on falling domestic production levels also. This continues to draw on the overall price levels seen through the market which continues to draw from seasonal market activity during the next several weeks due to holiday and summer travel activity. June futures posted a gain of 1.9 cents per gallon, closing at $1.642 per gallon as traders continue to move into the market looking for additional product. There may be some additional support, which may help to draw additional commercial interest back into the complex over the coming days and weeks although it is uncertain just how much higher prices will be able to move before markets level out for the season.

(ES)

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