Ethanol Blog
Rick Kment DTN Analyst

Wednesday 11/21/12

Ethanol Inventory Surges

Ethanol inventory levels increased 45.2 million gallons at the end of last week according to the latest EIA report released Wednesday morning.

This accounted for a 6% rise in overall stock levels throughout the country. The most shocking development in this move is that this buildup comes after two weeks of sharp inventory losses.

Total inventory levels are at 794 million gallons, which is 8.5% over year-ago levels. Any expectations that overall stock levels would be drawn down to year-ago levels or below by the end of the year have now been dashed, which may create additional pressure on the ethanol market during coming weeks.

The rebound in inventory levels comes as the East Coast recovers from the chain of storms which started with Hurricane Sandy, and then was followed by severe winter storms. But as transportation systems got back to normal, inventory levels rebounded aggressively.

Production of ethanol decreased 1.6% or 546,000 gallons per day last week, but compared to the sharp rally in ethanol inventory, this decrease will be easily overlooked heading into the Thanksgiving holiday.

Rick Kment can be reached at rick.kment@telventdtn.com

Posted at 6:24PM CST 11/21/12 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
S M T W T F S
         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
  • Spot Ethanol Prices Retreat on Profit-Taking
  • DDG Prices Drop as Barge Freight Falls
  • West Coast Spot Ethanol Prices Spike on Short Squeeze
  • Spot Ethanol Prices Pressured by Bearish EIA Data
  • DDGS Play Vital Role in Nebraska Ethanol Impact
  • Spot Ethanol Prices Flat to Up as Supply Data Eyed
  • Argo, PNW Spot Ethanol Prices Nudge Higher in Thin Trade
  • 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