Ethanol inventory levels tumbled once again according to the latest EIA report Wednesday. This drew additional aggressive buying back into the ethanol market despite quiet trade in front of the holiday break.
Renewed buyer support on the verge of markets closing Thursday for the Fourth of July holiday was based on the combination of aggressive gains in energy prices as well as lower ethanol stocks at the end of last week. Ethanol inventory levels fell to the lowest level since weekly data has been recorded, according to EIA. This pushed stocks 5.2% lower since last week, falling 33.6 million gallons during the last week of June. Total ethanol inventory levels are listed at 646.8 million gallons. This drop in supply comes due to a 924,000 gallon per day loss in production last week. Although demand may slow through the end of July, the renewed support in the energy market and tighter supply will likely keep prices supported through the next couple of weeks.
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