The  benchmark  Argo  market  Thursday  backed away from its 15-week high as bearish US 

Energy Information Administration data weighed on prices. 

"We're down a penny this morning," said one source. "I believe from yesterday's EIA report." 

S&P Global Platts assessed Argo at $1.5870/gal on Wednesday, near its highest level since 

April 25, when it was $1.6080/gal. 

The weekly EIA data showed production and stocks both higher in the week ended August 4. 

The rise in output, up 10,000 b/d to 1.012 million b/d, was in line with market expectations. 

But  the  climb  in  stocks, which added 495,000 barrels to finish the week with 21.347 million 

barrels,  was  beyond  what  the  market  was expecting. the Gulf Coast led the build. Market 

participants have seen a decline in exports, which mostly flow out of the Gulf Coast. With les

s export demand, stocks in the Gulf Coast are sensitive to builds. 

Argo had found support over the past several weeks from declines in stock levels and lower 

production. Despite record production levels early this year, the past three weeks have see

n output below 2016 levels. 

Feedstock  prices  also  bolstered  prices. Corn prices have been strong thanks to weather 

concerns  in  the Corn Belt. Many market participants have been bullish on corn, with some 

predicting $4/bushel in the coming weeks. 

"Corn  is  relatively  still  cheap,"  said  another source about buying interest in the ethanol 

market. 

The  US  Department  of  Agriculture  will release its World Agriculture Supply and Demand 

Estimate Thursday and traders expect a mixed bag of data. 

On  the  one  hand,  production  and  yields  for  the  current crop are expected to be lower, 

supporting prices. But on the other hand, carryover from the previous crop are expected to 

be higher, weighing on prices.