Ethanol Blog

There is little if any good news coming out of the latest EIA report that measured overall inventory, production and general demand at the end of last week.

Last week numbers were the first report to not factor in a portion of the Labor Day holiday weekend, allowing for a more accurate test to what the general trend is through early September.

Total ethanol inventory levels bounced 4.4% higher to 789 million gallons at the end of last week. This is the highest supply level since early March 2013. As if skyrocketing supplies are not enough to turn the ethanol market lower, ethanol demand slipped sharply, and production of ethanol continues to aggressively rise. With corn prices hovering below $3.50 per bushel, ethanol production growth is likely to continue to grow over the coming weeks leading into corn harvest. This is expected to do very little to support or stabilize price levels over the near future.

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

(ES)

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