Weekly Stocks of Fuel Ethanol

Stocks of fuel ethanol has dropped for the second week in a row, this week was a sharp drop to 24.8 million barrels.

There is two pieces of good news, one is we do decline seasonally in the April-June timeframe, and we are declining now, secondly US ethanol has become very competitive on the global market.

We are now 60-70 cents per gallon below Brazilian ethanol and ethanol is 60-70 cents below the price of gasoline. Therefore, we expect stocks of fuel ethanol to continue to trend lower as we move through the Spring into early Summer.