After posting a two-month low for ethanol inventory levels the week leading up to Labor Day weekend, stocks appear to be building quickly. The combination of increased ethanol production at the end of last week and slowing of overall demand helped to turn the tables in the ethanol situation.
There is less focus now on short supplies, although the back and forth movement in the markets may keep prices working in a wide range over coming weeks.
Ethanol stocks increased 4.2 million gallons at the end of last week. This moved total supply available to 684.6 million gallons. Ethanol production fell 1.2 million gallons per day, and led to total production at 34.9 million gallons a day.
Rick Kment can be reached at firstname.lastname@example.org
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