Ethanol Blog

Ethanol Inventory Continues Lower

Rick Kment
By  Rick Kment , DTN Analyst

Ethanol stocks fell 5% at the end of last week according to the weekly EIA report released Wednesday. This push lower in available ethanol supplies on hand moves inventory to the lowest level since the middle of May.

The drawdown of stocks comes in spite of stronger ethanol production levels through the week with total production increasing 4.6% over the previous week. Ethanol demand bounced moderately higher with blender inputs increasing slightly less than 1% over the previous week.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]

The combination of number shifts leaves some significant holes in the overall ethanol market system, and most of this is based on the lack of reliable weekly data for other activities, specifically ethanol export demand.

Although it is expected that most of the excess inventory has been exported following the recently lower price levels, data has not been released concerning those numbers.

This will continue to allow additional market shifts, and potential support as long as inventory levels continue to slip lower through the fall. It is important to keep in mind, before getting overly bullish on the ethanol market, that even with the strong decrease in inventory levels the total stocks remain nearly 14% over year-ago levels. This puts even more focus on the pace that ethanol was produced and stored through the summer.

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

(ES)

P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .