Recent developments in the ethanol market

The outlook for the U.S. ethanol market is very confusing. Ethanol production has declines significantly this year, with annualized production in the last few weeks down between 12 million and 12.5 billion gallons. That clearly suggests a tight market with the RFS mandate at 13.8 billion gallons for 2013. The supply-demand balance is further complicated by the "blend wall’ that suggests a market for only about 13.4 billion gallons of ethanol. How this all gets resolved is far from clear at this point in time.Read More