Spot Ethanol Prices End mostly Lower on Bearish Sentiment
NEW YORK (DTN) -- Spot ethanol prices ended lower on Wednesday afternoon as
bearish sentiment that also pressed corn and RBOB futures lower despite a mixed
ethanol report by the Energy Information Administration.
The EIA's Weekly Petroleum Status Report showed ethanol stockpiles falling
during the week-ended June 16 by 1.2% to 22.3 million bbl while keeping a
year-over-year surplus of 5.7%. Production fell 1.2% on the week to 990,000 bpd
while up 3% on the year.
"There's still a lot of production and that's what people focused on," said
a trade source. "Production near 1 million bpd is bearish, so buyers are trying
to keep the prices low. Until we see some genuine tightness, the market will
continue to drift."
In related markets, Chicago Board of Trade July corn futures eased 1.2cts to
$3.686 bushel, near a $3.682 three-week spot low. The New York Mercantile
Exchange July RBOB futures contract slumped 1.35cts to $1.4105 gallon, off a
$1.3955 better than six-month low on the spot continuation chart.
July ethanol futures settled 0.7cts lower at $1.515 gallon, off a near
one-month low of $1.507 gallon and traded at a 10.45cts premium to RBOB
futures. The crush spread eased to 55.6cts today.
Chicago swaps for July were talked at $1.515 gallon and August swaps traded
at $1.51 gallon.
In cash trade, prompt ethanol supply at the Argo hub in the Chicago cash
market traded several times during the aftermarket window at $1.51, $1.5125 and
$1.5075 gallon for a 0.75cts loss on the session. In the rail transport market,
ethanol under Rule 11 terms was talked at $1.50 gallon, unchanged on the
June fuel ethanol barges at the New York Harbor were valued at $1.58 gallon
for a 0.5cts decline on the session. July barges are now pegged at $1.60 gallon.
Spot ethanol prices for California were seen 1.5cts lower on the day at
$1.68 gallon, with Houston prices talked at $1.56 gallon, down 0.5cts.
Renewable Identification Numbers also eased, with D6 RINs for 2016 seen at
73.0cts and 2017 D6 RINs trading at 73.75cts.
George Orwel, 1.718.522.3969, firstname.lastname@example.org, www.dtn.com. (c) 2017
DTN. All rights reserved.