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Ethanol At A Glance


23

Ethanol at a Glance - March 23rd Edition

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For the week ending on March 18, 2016 the EIA reported a corn for ethanol grind of 104.5 million bushels.. Crush margins pulled back sharply this past week while inventories are down 788,000 barrels from the recent high. The rate needed to meet the USDA 5.225 Billion bushel target continues to fall, now pegged at 94.2 million bushels per week. See below.

 

Gasoline demand continues to remain strong coming in at 9.3% higher than this time last year.

 

The chart below points to a higher expected gasoline demand moving forward. This implies that ethanol stocks will likely draw down at some point, giving a lift to ethanol futures and backstopping corn when it happens. 

 

 

Producer margins were down this week due in part to a 6 cent decline in ethanol futures while prices for FOB distiller grains traded between $4.00 to $7.00 lower than the week prior.

 

 

 

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Quotes are delayed at least 10-minutes. Market Data provided by Barchart.com
These data and comments are provided for information purposes only and are not intended to be used for specific trading strategies. This commentary is written as a daily marketing tool to help farmers sell the grain they raise. Although all information is believed to be reliable, we cannot guarantee its accuracy or completeness. Past performance and testimonials are not necessarily indicative of future results. Commodity trading involves the risk of loss, and you should fully understand those risks before trading. This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by Roach Ag. Marketing, Ltd. Roach Ag. Marketing Ltd. is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. These materials do not necessarily reflect the viewpoints and trading strategies employed by Roach Ag Marketing, Ltd. All forecasts of market conditions are inherently subjective and speculative, and actual results and subsequent forecasts may vary significantly from these forecasts.