The newest information coming from the Energy Information Administration posted overall ethanol inventory levels climbing to a three-week high, while overall production of ethanol also continued to be expanded at the end of last week.
While there was increased supplies and growing production, which will likely keep supplies readily available over the near future, demand for ethanol continues to slip. The lack of overall blending of ethanol is somewhat a concern just two weeks away from the Labor Day weekend.
Another bounce is expected through the end of August as additional back-to-school trips, and holiday weekend travel plans take shape for many consumers. Total inventory levels are currently 2.8% ahead of the previous week, and nearly 11% over year-ago levels. But the news did very little to upset the overall ethanol price as traders closely followed the midweek support in energy markets Wednesday.
Some additional market shifts may be seen during the next two trading sessions due to prices only able to post narrow gains.
Rick Kment can be reached at email@example.com
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