Spot Ethanol Prices End Mixed, DN on Wk amid Waning Demand
NEW YORK (DTN) -- Spot ethanol prices posted mixed results Friday afternoon
and ended the trade week down across the board amid talk of soft fundamentals.
Blending demand eased in the United States and abroad while supply remains
relatively ample, said trade sources. They cited midweek data from the Energy
Information Administration that showed net refiner and blender inputs, a
measure for ethanol demand, fell 3,000 bpd to 898,000 bpd during the week-ended
Sept. 15, while down 22,000 bpd or 2.4% year-on-year.
In addition, export demand has slowed since last month partly because the
arbitrage between U.S. and Brazilian ethanol prices has narrowed since Brazil
slapped a 20% tariff on imported ethanol from the United States after an annual
600 million-liter or 158.5 million gallon quota is met.
This year fuel ethanol exports to Brazil are at 1.17 billion liters or 310
million gallons through July, according to the U.S. Census Bureau's trade data.
On the session, gains were seen at the Kinder Morgan-operated Argo terminal
in the Chicago market, where 18 trades were concluded during the aftermarket
window, with New York Harbor eking only a fractional gain.
The rail shipment and Gulf Coast markets eased amid low volume trade. The
Pacific Northwest and the Southwest markets saw minimal activity as well and
their prompt prices ended unchanged. On a weekly basis, all the main trade hubs
fell by anywhere between 2.0cts and 5.0cts.
In ethanol paper trade, October ethanol futures settled up 0.3cts at $1.514
gallon and spot-month corn futures climbed 3.2cts to $3.534 gallon on the
Chicago Board of Trade.
In physical trade, prompt supply ethanol at Argo traded 18 times at $1.56,
$1.5625 and $1.5670 gallon for a session gain of 1.75cts. In the rail transport
market, ethanol traded under Rule 11 terms was seen down a penny at $1.54
gallon. Swaps traded at $1.515 gallon for October and $1.47 gallon for
On the East Coast, October barged ethanol at the New York Harbor was pegged
at $1.605 gallon, up 0.5cts on the day but plunged 5.0cts versus a week ago.
November barges were seen at $1.555 gallon.
Along the West Coast, prompt transport ethanol in northern California was
talked at a $1.66 to $1.68 gallon bid/ask for no change. Barged or rail ethanol
supply in Houston was talked at $1.605 gallon, down 0.5cts on the day with a
2.5cts loss on the week.
In cash biodiesel trade, B100 for 2017 traded unchanged at $3.325 at the New
York Harbor, $3.375 in Chicago and at $3.275 in Houston.
In the renewable credits market, 2017 D6 ethanol RINs traded at 82.5cts and
talked last at 82.75cts for a gain of 1.25cts. D4 2017 biomass-based diesel
RINs traded at $1.065, up 1.5cts on the day.
Spot Ethanol Prices
Market Low High Last vs 9/21 vs 9/15
New York Harbor $1.6000 $1.6100 $1.6050 $0.0050 -$0.0500
Chicago (Terminal) $1.5650 $1.5700 $1.5675 $0.0175 -$0.0225
Chicago (Rule 11) $1.5300 $1.5500 $1.5400 -$0.0100 -$0.0200
Houston $1.6000 $1.6100 $1.6050 -$0.0050 -$0.0250
Northern Calif. $1.6600 $1.6800 $1.6700 $0.0000 -$0.0500
Southern Calif. $1.6600 $1.6800 $1.6700 -$0.0100 -$0.0500
Phoenix $1.6100 $1.6400 $1.6250 $0.0000 -$0.0200
Pacific Northwest $1.6500 $1.6700 $1.6600 $0.0000 -$0.0300
2016 D6 RINs $0.8200 $0.8300 $0.8250 $0.0075 -$0.0050
2017 D6 RINs $0.8250 $0.8300 $0.8275 $0.0125 -$0.0050
George Orwel, 1.718.522.3969, email@example.com, www.dtn.com. (c) 2017
DTN. All rights reserved.