Ethanol Blog
Rick Kment DTN Analyst

Friday 01/11/13

Tight Corn Supplies Spark Ethanol Buying

Ethanol futures surged higher following the 11 a.m. CT release of the USDA crop report.

Although corn production was increased in the latest report, the reduction of corn supplies was the main driver of buying in the market.

Ethanol production was left unchanged, although increased demand from feed demand posted a moderate to strong increase. Overall, the tighter supply levels continue to keep the market bullish heading into the spring.

Given the uncertainty of spring and summer weather conditions and fears of additional drought, traders are focusing on still tight corn supplies through the spring and summer.

March contracts closed 10 cents higher, at $7.08 per bushel. This active support in the corn market helped to drive sharp gains back into the ethanol market, which gained 4 to 4.6 cents per gallon Friday.

Rick Kment can be reached at

Posted at 4:19PM CST 01/11/13 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
  • 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