Spot ethanol prices moved lower in early trade Wednesday after federal data showed an increase in domestic inventories last week that eased concerns over tight supply.
The Energy Information Administration released data midmorning that showed total U.S. ethanol stocks surged nearly 400,000 bbl or 2.5% to 15.653 million bbl during the week-ended Mar. 21.
"We are trading on higher stocks, not lower production, and the market was overbought," said a trader. This-week delivered ethanol at the Kinder Morgan-operated Argo terminal near Chicago traded at $3.33 per gallon after talk at a $3.33 to $3.35 per gallon bid/ask spread, down 6.0 cents, while prompt ethanol shipment in northern California traded at $3.965 per gallon, down 4.5 cents.
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