Alto Ingredients Inc (ALTO)

[Rule_62]

5A Stocks of Total Motor Gasoline and Fuel Ethanol by PAD District with Total Gasoline by Sub-PADD

The excel file is available right at 11 am. The PDF version doesn't come out until later. In the excel file, select the data tab, then scroll all the way down and all the way over to the right.

West Coast stocks increased by 100k barrels from 2,275k to 2,376k
Probably a response to the significant price increase. Blenders are probably trying to rely on their stocks on hand in hopes the rail situation magically goes away. The continued price pressure increase would seem to indicate that's not going to happen any time soon.

As for corn, the price of corn has been steadily increasing, but on the West Coast, the price of ethanol has consistently outstripped the gains in corn price. It's fairly easy to understand overall.

2.74 gallons of ethanol produced from a bushel of corn.
30% of the price of the corn recovered in by-products.

An 8 cent increase in corn = $0.0292 material increase per gallon ethanol at a basic level

Factor in the co-product return: 0.08 x .3 = 0.024/bushel = 0.0088 return/gallon produced.

So 0.0292 - 0.0088 = $0.0204. In other words, a 2 cent increase in the price of ethanol offsets a 8 cent increase in the price of corn.

West Coast ethanol increased by 10 cents yesterday alone.