Ethanol Blog
Rick Kment DTN Analyst

Wednesday 07/23/14

Inventory Stability Brings Slight Price Support

The ethanol markets have been quickly shifted by differing market factors over the last few months, and weekly inventory level changes seem to be one of the most focused on factors in overall short- and long-term ethanol price moves.

Data released Wednesday morning from the EIA posted total ethanol stocks changing very little from week-ago levels, which is helping to leave the market moderately supported. The expectation that inventory levels would continue to grow through the end of July seems to be not be the case with stocks actually slipping 210,000 gallons.

Even though 210,000 gallons is a large amount, compared to total overall stocks of 753.5 million gallons, it is just a sliver of the overall pie. This also moved overall ethanol stocks to a four-week low despite ethanol production increasing over the last week.

Ethanol prices gained 1 to 2.7 cents per gallon, but the lack of market-shaking moves in the EIA report allowed for gains of 2 to 3 cents in the corn market to be the biggest factor in the daily price shifts through the ethanol complex. Traders will continue to closely follow the shifts in the corn markets, while corn prices closer to $3.50 per bushel than $4 per bushel will likely spark additional ethanol production through the remainder of the summer.

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

(ES)

Posted at 4:41PM CDT 07/23/14 by Rick Kment
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
July  2015
S M T W T F S
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31   
Subscribe to Ethanol Blog RSS
Recent Blog Posts
  • Grains Council Team Educates Southern Mexico Cattle Industry
  • Spot Ethanol Values Boosted by Corn Futures Rally
  • Energy Pressure Follows Weaker Stock Market
  • Argo, NYH Spot Ethanol Edge Lower With Corn, RBOB Futures
  • DDG Price Decline Slows Amid Sluggish Trade
  • Argo, NYH Spot Ethanol Trade Higher on Corn Futures Rally
  • Spot Ethanol Price Gains Backed by Corn Futures Rally
  • Grains Council Educates Japanese Swine Producers on DDGS
  • Uncertainty Seen in Ethanol Market Direction
  • Spot Ethanol Prices Higher on Falling Ethanol Stocks
  • Corn Rally Draws Ethanol Support
  • Spot Ethanol Prices Track Corn Futures Higher
  • Chinese Trade Disruptions Result in DDG Price Plunge
  • Ethanol Futures Close Week Higher
  • Conference: Aquaculture Must Diversify Feed Ingredients
  • Spot Ethanol Prices Soften on Rising Supply
  • Spot Ethanol Prices Mixed on Weekly EIA Supply Data
  • New York Spot Ethanol Biggest Gainer as Market Rebounds
  • China Rumors Worry DDG Market
  • Ethanol Futures Follow Outside Markets Lower