The Chicago Argo ethanol posted its steepest single-day gain in more than a month Wednesday in reaction to bullish data released by the US Energy Information Administration.
For the first time in eight weeks, the weekly data showed declines in both stockpiles and production in the same week. US ethanol stocks for the week that ended May 2 fell 72,000 barrels to 17.14 million barrels while production dipped 4,000 b/d to 894,000 b/d, the most bullish report since the week ended March 7.
In reaction, Chicago Argo ethanol was assessed 10.25 cents higher at $2.1715/gal, the biggest jump since April 4, when the assessment climbed 20.5 cents to $3.01/gal.
Since hitting an eight-year high of $3.76/gal on March 31, the assessment has fallen 20 of the subsequent 26 sessions, mostly because of rebounding supplies.
US ethanol stocks declined in all but two regions after rising in all five regions for the first time since November 2012 in the week that ended April 18.
Midwest stocks fell 318,000 barrels to a four-month low of 5.787 million barrels, the lowest level since the week ending December 27. The last time Midwest stocks were this low, Chicago Argo ethanol was assessed at $2.18/gal.
East Coast ethanol stocks, on the other hand, moved up 307,000 barrels to 6.229 million barrels, the highest level in more than nine months. After hitting an all-time low, regional stocks have risen for seven straight weeks. The data showed East Coast stocks higher than Midwest stocks for the first time in seven months.
