US Spot Ethanol Prices End Lower on Futures Losses
NEW YORK (DTN) -- Spot ethanol prices ended lower Friday and also on a
weekly basis amid a selloff by Chicago Board of Trade corn futures and New York
Mercantile Exchange RBOB futures.
Trade volume was limited in the trade market ahead of the weekend break,
with discussions only reported in the New York Harbor and in Chicago markets,
said a trade source.
CBOT September corn futures today reversed Thursday's gains, pressed down by
NYMEX RBOB futures tumbled on overbought market conditions and after a
survey by oil tanker-tracker Petro-Logistics showed output by the Organization
of Petroleum Exporting Countries is poised to climb by 145,000 bpd this month.
Domestic ethanol fundamentals are also bearish. The Energy Information
Administration reported Wednesday that ethanol stocks rose 900,000 bbl or 4.2%
to a 22.1 million bbl four-week high during the week-ended July 14.
Domestic plant production rose 19,000 bpd to 1.026 million bpd, while
blending demand 6,000 bpd to 921,000 bpd and was down 13,000 bpd year-on-year.
At settlement, CBOT September corn futures dropped 11.2cts to $3.796 bushel,
while NYMEX August RBOB futures plunged by 4.29cts to $1.5633 gallon. The
August ethanol futures contract fell 1.5cts to $1.523 gallon.
In the physical market, prompt ethanol at the Argo terminal in the Chicago
market was traded nine times during the aftermarket window at $1.5075 gallon
and twice at $1.51 gallon, down 2.0cts on the day.
In the rail market, ethanol traded under Rule 11 terms was pegged at $1.50
gallon, down 1.5cts on the session.
A July fuel ethanol barge at the New York Harbor was offered at $1.61
gallon, down 1.0cts on the day.
Along the West Coast, this week shipment of products in California was down
2cts on the day at $1.76 gallon. On the Gulf Coast, Houston was down 2cts at
In the Renewable Identification Numbers market, 2017 D6 ethanol RINs traded
at 82cts, down 1.75. 2017 D4 biomass diesel RINs traded at $1.105, down 2cts.
Market Low High Last vs 7/20 vs 7/14
New York Harbor $1.5900 $1.6100 $1.6000 -$0.0100 -$0.0150
Chicago (Terminal) $1.5000 $1.5200 $1.5100 -$0.0200 -$0.0200
Chicago (Rule 11) $1.4900 $1.5100 $1.5000 -$0.0150 -$0.0250
Houston $1.5700 $1.5900 $1.5800 -$0.0200 -$0.0300
Northern Calif. $1.7500 $1.7700 $1.7600 -$0.0200 -$0.0400
Southern Calif. $1.7500 $1.7700 $1.7600 -$0.0200 -$0.0400
Phoenix $1.6600 $1.6800 $1.6700 -$0.0200 -$0.0400
Pacific Northwest $1.7400 $1.7600 $1.7500 -$0.0200 -$0.0400
2016 D6 RINs $0.8100 $0.8200 $0.8150 -$0.0200 $0.0400
2017 D6 RINs $0.8100 $0.8300 $0.8200 -$0.0175 $0.0400
George Orwel, 1.718.522.3969, email@example.com, www.dtn.com. (c) 2017
DTN. All rights reserved.