The focus through the ethanol futures market Wednesday quickly moved away from the direction of corn price movements, and quickly back to overall product available heading into the Labor Day weekend.
The latest EIA report released Wednesday morning focused on overall ethanol stocks moving to a 13 week low, and falling 5.1% from the previous week. Although these numbers are tallied as of last Friday, the expectation is that additional inventory reductions will be seen through this coming week.
Overall production of ethanol continues to erode, while demand has bounced higher through the end of August. Even with this latest reduction in inventory, ethanol inventories are still nearly 7% over year-ago levels which is expected to limit long-term support as markets are far from focusing on running out of product.
But the weekly drop in ethanol levels was still able to help boost nearby price levels by 3.2 cents per gallon even as corn prices closed steady to lower for the day.
Rick Kment can be reached at email@example.com
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