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Spot Ethanol DN with Corn Futures, NYH/Argo Spread 1Wk Hig
8/20 4:56 PM
Spot Ethanol DN with Corn Futures, NYH/Argo Spread 1Wk High WASHINGTON, D.C. (DTN) -- Spot ethanol prices across the main trade markets moved lower in lackluster afternoon trade Tuesday, with product in Argo terminal in Chicago widening its discount to New York Harbor to 13.25cts, while Chicago Board of Trade feedstock September corn futures extended lower to settle at a one-week low on the spot continuation chart. CBOT September corn futures losses continue to weigh on spot ethanol prices, with the contract down another 5.4cts on Tuesday to $3.594 a bushel amid a continued downtrend trend in cash corn markets. CBOT front month ethanol futures gained 0.85% to $1.302 a gallon and the New York Mercantile Exchange September RBOB contract advanced 1.67cts to $1.6811 a gallon following uneven back-and-forth session in oil complex. In the industry news, POET today announced it will idle production at its bioprocessing facility in Cloverdale, Indiana due to recent decisions by the Administration regarding Small Refinery Exemptions. According to the statement, POET already decreased production by half at its bio-refineries with the largest reductions taking place in Iowa and Ohio. As a result, numerous jobs will be consolidated across POET's 28 bio-refineries, and corn processing will drop by an additional 100 million bushels across Iowa, Ohio, Michigan, Indiana, Minnesota, South Dakota and Missouri. POET Chairman and CEO Jeff Broin said, "The Renewable Fuel Standard was designed to increase the use of clean, renewable biofuels and generate grain demand for farmers. Our industry invested billions of dollars based on the belief that oil could not restrict access to the market and EPA would stand behind the intent of the Renewable Fuel Standard. Unfortunately, the oil industry is manipulating the EPA and is now using the RFS to destroy demand for biofuels, reducing the price of commodities and gutting rural economies in the process." In the physical market, spot ethanol prices in Argo hub in Chicago was last indexed 1.95cts lower at $1.2925 gallon, while product moved under Rule 11 rail terms fell 1.25cts to $1.3150 gallon. Source pegged NYH spot ethanol a penny lower at $1.4250 gallon while West Coast spot ethanol shed 3cts to $1.5200 gallon and Pacific Northwest ethanol declined 1.50cts to $1.4550 gallon. Sources pegged spot ethanol in Gulf Coast 1.50cts lower at $1.3900 gallon. In Tuesday afternoon discussion, sources reported ethanol 2019 D6 RINs at 13cts, up 1.75cts while 2018 D6 RINs gained 2.25cts to 6cts. D4 2019 biomass-based diesel RINs advanced 0.25cts to 44cts and D4 2018 RINs gained a penny to 33.50cts. Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.