Ethanol Blog
Rick Kment DTN Analyst

Thursday 09/13/12

Ethanol Rack Prices Weakening

The national average rack price has fallen 8 cents per gallon during the last two weeks. Although given the pressure in the corn market during this time (December futures prices fell 26 cents per bushel), traders are justified pushing both futures and cash ethanol prices lower, but many are starting to become even more concerned with building ethanol supplies and expected sluggish seasonal demand through the rest of the fall and winter.

Traditionally, driving activity slows following the Labor Day holiday. This affects ethanol and gasoline demand. The implications of sluggish demand given uncertainty in the economy and seasonal trend may not offset any cutback seen during the last two months in ethanol production, and could allow for even greater inventory building through the remainder of the year.

If this happens, rack prices are most at risk, because this is the segment of the market that has physical inventory, which will affect overall blending activity and retail markets. The continued uncertainty of the demand trend for ethanol during the next several weeks and pressure in corn markets could keep rack prices weak.

Rick Kment can be reached at

Posted at 3:35PM CDT 09/13/12 by Rick Kment
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
April  2015
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30      
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • An Economic Case for Ethanol
  • Spot Ethanol Gains at Argo, Steady in New York Harbor
  • Grains Council Works to Open Cuban Markets
  • Ethanol Production Sliding Lower
  • Spot Ethanol Advances After Bullish Weekly Supply Report
  • D6 RINs Extend Higher; Spot Ethanol Prices Flat
  • D6 RINs Edge Higher While Spot Ethanol Prices Ease
  • Corn Prices Remain Range Bound
  • DDGS Rise to Highest Level in Five Months
  • Spot Ethanol Prices Weaken Amid Sluggish Demand
  • Gasoline Stocks Change Direction
  • Spot Ethanol Prices Mostly Flat in Lackluster Trade
  • Spring Buying in the Air
  • DDG Prices Rise Slightly in Slow Week of Trade
  • Ethanol Drawing From Strong Gasoline Demand
  • Grains Council Targets Caribbean Markets
  • Spot Ethanol Prices Mixed in Thin Trade
  • April 1st Buying Frenzy on Supply Reductions
  • Bullish EIA Supply Report Spurs Rally for Ethanol Prices
  • Spot Ethanol Prices Moved Mixed After USDA Report