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Spot Ethanol Prices End Mixed, DN on Wk amid Waning Demand
9/22 5:05 PM
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 September. 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 Price Change 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 -$0.0050 ($/gal) George Orwel, 1.718.522.3969, george.orwel@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.