U.S. Ethanol Inventories Drop from Six-Month Highs

   on January 07 2013 1:50 PM
A worker cuts sugar cane for raw sugar and ethanol fuel production on the property of the Sao Martinho mill in Pradopolis, about 300 km (186 miles) northwest of Sao Paulo.
A worker cuts sugarcane for raw sugar and ethanol fuel production on the property of the Sao Martinho mill in Pradopolis, about 300 km (186 miles) northwest of Sao Paulo. Reuters

U.S. ethanol supplies in late December receded from the 6 ½-month highs reached earlier in the month but remain relatively abundant, CME Group said in a report.During the week ended December 28, nationwide ethanol inventories totaled 20.21 million barrels, down 3% from two weeks earlier, according to Energy Department data. Stockpiles are up nearly 13% over the same week a year earlier.

“The recent rise in ethanol inventories tracks to some extent with the 13% surge in gasoline inventories seen in the past six reporting weeks,” CME Group said in its bi-weekly Ethanol Outlook Report released January 7.In futures trading, CBOT Denatured Fuel Ethanol futures extended a sharp sell-off to hit six-month lows at the end of last week, partly in response to a drop in corn prices. In trading January 7, February ethanol rose 1.3 cents to $2.194 a gallon.Click here for more of the CME Group’s bi-weekly Ethanol Outlook Report. 

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