Spot Ethanol Markets mostly Gain as Stocks Dip to 3Wks Low
WASHINGTON, D.C. (DTN) -- Spot ethanol prices mostly gained across key
supply hubs in limited trade Wednesday afternoon as domestic ethanol stocks
posted the first draw in three weeks, according to the Energy Information
Administration's supply report released midmorning.
EIA data details domestic ethanol stocks declined 100,000 bbl to 22.890
million bbl in the profiled week, while still 2.2% higher when the
corresponding week in 2017. Data shows ethanol stocks at the East Coast PADD 1
stayed flat at 7.001 million bbl, but 2.9% higher than the corresponding week
in 2017. At the Midwest PADD 2, stockpiles gained 150,000 bbl to 7.762 million
bbl, 6.0% lower than inventory on-hand last year. Gulf Coast PADD 3 stocks
declined a sizable 291,000 bbl to 4.400 million bbl, but are still 7.3% above a
year ago while West Coast PADD V ethanol inventories gained 14,000 bbl to 3.339
million bbl, up 17.9% against year prior.
Plant production decreased fractionally by 23,000 bpd to 1.046 million bpd,
reversing down from the high rates reported last week, and 3.9% lower than the
corresponding week a year ago. Four-week averaged production was 1.051 million
bpd versus 1.084 million bpd during the corresponding four-week period in 2017.
Net refiner and blender inputs, a measure for ethanol demand, gained for the
first time in three weeks up 14,000 bpd to 910,000 bpd during the week ending
Dec. 7, 0.7% below the year ago. For the four weeks ended Dec. 7, blending
demand averaged 915,000 bpd, 4,000 bpd above the same period in 2017.
In futures trade, the Chicago Board of Trade December corn contract shifted
1.2cts higher to settle at $3.760 bushel, a multi-week high spurred by progress
in trade talks between China and the United States. Renewed support in the corn
market is driven by the potential uptick in export activity in the coming
CBOT January ethanol futures shifted 2.1cts higher at $1.255 gallon end
session. New York Mercantile Exchange RBOB lost 1.94cts to $1.4204 gallon on
In physical trade, spot ethanol at the Kinder Morgan operated Argo terminal
in Chicago was pegged by sources at $1.1850 gallon, a penny higher on the
session, while spot product at the New York Harbor, gained a like amount to
$1.3450 gallon. West Coast spot product was down 2.0cts on the session to
$1.3600, while spot product in Gulf Coast lost 1.0cst to $1.3150 gallon.
Trade was thin in the compliance credits market, with D6 2018 and 2019
Renewable Identification Numbers remained flat at 17.50cts and 20.63cts,
respectively, and D4 biomass-based diesel RINs holding value at 45.0cts for
2018 and 47.0cts for 2019.
Liubov Georges, 1.646.359.4088, email@example.com, www.dtn.com. (c)
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