Total ethanol inventory levels have once again dropped to three-year lows following the moderate to strong support over the last several weeks.
The move lower comes following some uncertainty in the market after inventory levels rose the week after Memorial Day. This cast doubt on the ability to move product through the summer months and significantly reduced price levels.
Total ethanol supplies are listed at 672 million gallons. This is 16.8 million gallons or 2.6% lower than last week levels. And this is 22.6% less than year-ago numbers. There continues to be increased growth in net inputs by refiners and blenders. This is a proxy for demand for ethanol. Inputs rose 1.2 million gallons per day at the end of last week.
This comes while implied demand for overall motor fuels slipped lower during the same time period. The lower price of ethanol over the last two weeks is helping to support blender activity.
Rick Kment can be reached at email@example.com