Ethanol Blog
Rick Kment DTN Analyst

Thursday 02/14/13

Ethanol Production Gaining

The announcement in the latest EIA data that was released Wednesday, that ethanol production is rising, is particularly a shock to the market or causing additional waves in market prices.

But it comes as several announcements have been seen over the last couple of weeks that idled and slowed ethanol production facilities either have increased or started production, or are in the process to planning on gaining production levels sometime in the future.

This comes as overall demand for gasoline and ethanol has increased through the month of February with traders looking for more increases through the spring and summer.

The demand increases have brought overall inventory levels down. With weekly inventory levels at the end of last week falling 3% from the previous week, overall inventory levels are well below year-ago levels.

This is a significant change from the aggressive buildup in inventory levels seen over the last year, and indicating that supplies may continue to tighten if demand grows as expected.

The combination of tighter supplies, even at $7 per bushel corn, will likely support plant margins and should continue to increase production over the short term. But the supply and demand relationship is still in a delicate balance, and could easily be thrown out of whack by production companies adding too much production too fast through the upcoming weeks and months.

Rick Kment can be reached at

Posted at 12:04PM CST 02/14/13 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 Track Corn Futures Lower
  • 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