Ethanol Blog
Rick Kment DTN Analyst

Thursday 02/20/14

Ethanol Supplies Continue to Grow

Information from the EIA released Thursday morning reported additional growth to inventory levels of ethanol at the end of last week. The market continues to focus on rebuilding inventory levels, and the addition of 42 million gallons during the second week of February may continue to point to the upcoming market trend.

Total supplies are listed at 722.4 million gallons. This latest news in inventory growth has started to create additional weakness through ethanol prices.

Although it is too early in the year to expect wide-ranging price shifts, the focus on additional stocks seemed to gain most traders attention. The backdrop behind the growing inventory was a two-part shift during last week coming from light to moderate production growth and overall weakness in blender demand. Until either production stabilizes or slows, or blending demand for ethanol grows, inventory levels will continue to grow.

As the spring and summer driving demand approaches, it is expected that demand growth will be the major factor in any inventory shifts through the upcoming months.

Rick Kment can be reached at rick.kment@telventdtn.com

(ES)

Posted at 3:15PM CST 02/20/14 by Rick Kment
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