Spot ethanol prices were unchanged in light early trading Wednesday as traders kept to the sidelines ahead of Thursday's corn supply report by the U.S. Department of Agriculture.
Trade sources said nobody wants to do any trading because the USDA is expected to trim its supply estimates at a time of rising demand, which would boost corn and ethanol prices. "I see people holding off trading until they see the numbers," said a trader.
This morning, the U.S. Energy Information Administration reported ethanol inventories rose 300,000 bbl to 15.7 million bbl last week, bouncing off record lows seen for the prior week. Implied demand rose 9,000 bpd to 896,000 bpd while up 4.9% from a year earlier.
George Orwel can be reached at firstname.lastname@example.org.