Ethanol Blog
George Orwel DTN Energy Reporter

Tuesday 09/11/12

Trader Expects Weekly Jump in U.S. Ethanol Supply

New York Harbor spot prices were under pressure today from rising supply, including imports from Brazil. Federal data set for release Wednesday are expected to show a weekly spike in supply for the week-ended Sept. 7, as domestic plants ramped up production while imports continued to come in from Brazil.

"A lot of gallons are showing up in the New York Harbor from Brazil," said a trader. "On the fundamentals, I don't see a change in the U.S. ethanol market through the end of the year, with a slight production increase, but we have an export seasonal boost in the fourth quarter, especially to Europe."

George Orwel can be reached at george.orwel@telventdtn.com.

Posted at 2:40PM CDT 09/11/12 by George Orwel
Comments (1)
When corn price went up, and 2012/13 harvest forecast went down, ethanol poduction went down - all in balance. These three components then left room for the imports from Brazil to supply the U.S. Last year, U.S ethanol supply helped Brazil out of a tight spot. U.S exported a bunch to Brazil, now U.S is doing the reverse. Now for last week inventory bump, yes import has a role. But the larger temporary factor is Isaac severe weather causing the Gulf-region gasoline refiners to shut down for a few days, but not the ethanol prodcuers in the Midwest. Gasoline refiners slowed down( some 4% less in the Gulf), but once they fire up, surely they will use up the E inventory as well). Europe seasonal demand will also soak up the inventory back down.
Posted by Eddy Lahens at 10:04AM CDT 09/12/12
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