Ag Talk | Agriculture.com
Reply
Community Manager
Jeff_a_Caldwell
Posts: 946
Registered: ‎04-29-2010
0

Ethanol supply glut despite low production

So, what happens now in the ethanol sector, with reports like these? 

 

"U.S. weekly ethanol production falls to a five-month low, but stockpiles remain large. US EIA reports output of 892,000 barrels/day in week ended March 9, down from 906,000 the prior week. "

 

That's according to a report out this morning. EIA's reporting 22 million barrels stockpiled, up 23% since January 1. But, output's way down. Is this affecting the corn bids from your local ethanol plant? If this continues, will you consider looking elsewhere to market your grain? 



-----------------------------------------------
Jeff Caldwell
Agriculture.com Multimedia Editor
-----------------------------------------------
Veteran Advisor
roarintiger1
Posts: 1,425
Registered: ‎04-29-2011
0

Re: Ethanol supply glut despite low production

I have no figures to back this up...however....I'm assuming that the ethanol plants take in the vast majority of their corn in October, November, & December and ramp up production accordingly.  So, one would think that by March, production would naturally be lower.  I'm guessing that at some point, all of the ethanol will get used.

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Contributor
Sou Tx
Posts: 15
Registered: ‎05-13-2010
0

Re: Ethanol supply glut despite low production

The weekly reduction you cited amounts to approximately 1.4 mb grind for that week.
It is certainly a reduction, but..not much of one.

I am not necessarily bullish, however the spreads indicate something I am not willing to ignore.
Senior Contributor
vrbuck
Posts: 583
Registered: ‎05-13-2010
0

Re: Ethanol supply glut despite low production

Duh......

Senior Contributor
teaspoon73
Posts: 210
Registered: ‎05-17-2010
0

Re: Ethanol supply glut despite low production

  Don't worry vrbuck, the boats are being loaded as we speak. The world will not pass up cheap fuel. RBOB gas is at 3.34 and ethanol is at 2.31. Go fill up with High octane clean burning ethanol.

Senior Contributor
Buckley_HF
Posts: 165
Registered: ‎12-29-2011
0

Re: Ethanol supply glut despite low production

[ Edited ]
http://www.wisconsinagconnection.com/story-national.php?Id=563&yr=2012 Guess its not all "coffee cans and beer bottles to store it now." huge shipping tankers are somewhat equivalent I guess when u can't see anything positive
Veteran Advisor
roarintiger1
Posts: 1,425
Registered: ‎04-29-2011
0

Re: Ethanol supply glut despite low production

Buckley, Thanks for the link.........hope that puts someone's mind at ease for a while.  He seems pretty worried about the ethanol supply.  

"Failing to prepare is preparing to fail." "Success happens when preparation meets opportunity"
Senior Contributor
vrbuck
Posts: 583
Registered: ‎05-13-2010
0

Re: Ethanol supply glut despite low production

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPOOXE_SAE_NUS_MBBL&f=W

 

That report was with data from 2 months ago.  The stockpile of ethanol has grown since then to epic proportions.  The stockpile has leveled off since last week but the production has declining steadily since last december. 

 

 

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPOOXE_YOP_NUS_MBBLD&f=W

 

Guess they arent import enough of it yet.

Veteran Contributor
oncearound
Posts: 102
Registered: ‎05-21-2010
0

Re: Ethanol supply glut despite low production

all vrbuck's "facts" seem incapable of stopping the "march" {;-) in old crop corn, you know the crop that according to some would have a $4 or $3 in front of it by now? look, just hit highs not seen since Sep......"duh"!!!!!!!

Frequent Contributor
Threadkiller
Posts: 42
Registered: ‎07-30-2011
0

Re: Ethanol supply glut despite low production

i noticed yesterday at some pumps E-10 was priced 20 cents cheaper than straight unleaded.  maybe this  so called "glut" (which  is around 10% more stocks than a year ago) will encourage more people to try E-10 or increased ethanol blends now that the price of ethanol is so much cheaper than unleaded.