Ethanol Blog

Ethanol Stocks Drop

Rick Kment
By  Rick Kment , DTN Analyst

Ethanol inventory levels dropped 10.8 million gallons at the end of last week according to the latest EIA report that was released Thursday.

This accounts for a 1.6% drop in overall stock levels across the country. Currently total ethanol inventory are still 4.3% over year-ago levels, but that is significantly below the levels seen during the last several months.

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The end of 2011 posted sharp increases in production and started to build inventory levels to near record levels. But during the next couple of months, the measuring stick will be not on 2011 levels, but the strong inventory situation in early 2012, and the week-to-week numbers will look significantly different based only on the levels seen the previous year.

This is not expected to change the overall direction of the ethanol market much, but with weekly reports not showing a sizable gain in inventory like seen through the last 11 months, it most likely will take some emphasis off the ethanol market.

This could allow for more focus on demand for ethanol and production levels. Production of ethanol slipped 126,000 gallons per day, down 10.1% from year-ago levels.

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

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