Stocks went up for the 4th week in a row to 26.54 million barrels. That isn’t a record high, that was set last year, but a record high for late March.
So certainly, ethanol stocks rising to these levels is some what of a concern.
One item we want to mention is that US ethanol is now cheaper than Brazilian ethanol. That was not the case 6-8 weeks ago so therefore we do believe that will result in better US exports of ethanol in the next few months.
That could promote lower stocks as we move forward and it’s also a seasonal trend where ethanol stocks decline in the April-May timeframe.