Ethanol prices continue to erode Wednesday. This has pushed ethanol futures 9 cents per gallon lower since the end of last week. The lack of support in the corn market is a factor.
But the bigger director in the market was announced in the latest EIA report Wednesday. Ethanol inventory levels have bounced higher at the end of last week. This pushed supplies higher through the weekend of, and week following Memorial Day.
Total ethanol supplies rose 16 million gallons at the end of last week. This pushed total inventory levels to 688.8 million gallons. This is still 22.5% over year-ago levels, but grew 2.3% over the week previous.
The expectation of strong prices helped to boost overall production levels in the report also. There is growing uncertainty of just how much follow-through support will be seen in the ethanol market over the next several weeks. This could limit additional price support as well as higher production rates by plants trying to source corn supplies through the summer.
Rick Kment can be reached at email@example.com
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