| No time to update my spreadsheet this morning but we got a healthy drop in ethanol stocks yesterday.. 599,000 bbls
( http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPO... )
While domestic demand was the 2nd highest this calendar year.. ( http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=w_epo... )
The grind continues to run about 5% ahead of year ago levels..260 myn'ish bushel pace.. as we seasonally ramp up production post Harvest.. ( http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=w_epo... )
The WASDE has room to go up on the ethanol grind especially in sorghum which currently is UNCHANGED from last years 15 myn bushel grind.. (one plant can do that..and there's more than one grinding sorghum now..)
http://www.usda.gov/oce/commodity/wasde/latest.pdf
Harvest is winding down now.. basis is starting to improve.
Domestic Crude oil production is flirting with falling below 9 myn bbl per day level..
( http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=wcrfpus2&f=w )
a .5 myn bbls per day drop from this summer...
Yesterday's reports led to a quick $2 rally in Crude prices.. followed by a gradual pullback overnight..
Markets are finding the new normal.. ethanol exports are on the rise. |