Spot Ethanol Prices Spike on Bullish EIA Ethanol Data
"U.S. spot ethanol prices rallied early Wednesday after federal data showed domestic ethanol supplies fell last week as demand increased.
The Energy Information Administration reported ethanol inventories were drawn down 451,000 bbl or 2.3% to 18.808 million bbl, while implied demand rose 2,000 bpd or 0.2% to 821,000 bpd.
Most of the stock draws were in the East Coast and the Midwest.
Ethanol futures rallied following additional commercial buyer support. Even with corn prices remaining stable over the last three trading sessions, additional gains have consistently developed in nearby ethanol contracts. November futures posted a 3.4-cent-per-gallon rally, moving to $2.404 per gallon due to lower inventory levels and reduced production at the end of last week, according to the latest EIA report.
Spot ethanol prices shot higher as renewed fundamental support is starting to develop through the market. This pushed prices 1 to 8 cents per gallon higher. The most aggressive support was seen on the West Coast where prices gained 8 cents per gallon. The expectation that additional short term demand may be seen if overall inventory levels and production continues to fall, helped to solidify buyer interest Wednesday.
Spot Ethanol Rises with Corn Futures on Higher Exports
U.S. spot ethanol prices extended higher early Thursday on rising Chicago Board of Trade corn futures after fresh federal data showed U.S. grains export sales rose more than expected this week, suggesting rising demand from overseas.
The bullish grains data dovetailed Wednesday's federal data showing domestic ethanol supplies fell last week amid higher demand."
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