Ethanol price rally snaps despite stocks down 20% from March’s high

In Illinois, ethanol prices were rallying thanks to EIA data showing stocks at their lowest levels in a year but they have since stalled due to doubts the supply situation would last. Ethanol plants coming out of maintenance have boosted production in the past couple of weeks, which should help to fill the supply gap that has stocks at 20% below the high seen in March. Now that the summer driving season has finished and the last major driving period of the year is upon us, Thanksgiving, demand is expected to fall off. Lower demand and higher production will fill up stocks even more.