BLOOMBERG ethanol supply falls to record lows Ethanol Strengthens Against Gasoline as Stocks Fall to Record
By Mario Parker - Jun 14, 2013 5:46 PM ET
Ethanol’s discount to gasoline narrowed on concern stockpiles of the fuel aren’t adequate to meet demand.
The spread, or price difference, shrank 0.36 cent to 39.67 cents a gallon two days after an Energy Information Administration report showed inventories last week fell 2.6 percent to 16 million barrels, the lowest in records going back to June 2010 and as production lagged 3.9 percent below year-ago levels.
“We’ve got extremely low inventories and production hasn’t been all that great,” said Joshua Bailer, managing director of Next Generation Commodities, the biofuels division of Atlas Commodities LLC in Miami.
Denatured ethanol for July delivery gained 3.9 cents, or 1.6 percent, to $2.50 a gallon on the Chicago Board of Trade. Prices are up 14 percent this year.