US Spot Ethanol Prices End Limited Trade Session Mixed
OLD BRIDGE, N.J. (DTN) --- US spot ethanol prices finished mixed in light
trading activity as data from the Energy Information Administration detailed a
second week of reduced ethanol demand from U.S. fuel blenders while production
rose 3% during the week-ended July 13.
EIA reported net refiner and blender inputs, a measure for ethanol demand,
fell 17,000 bpd to 913,000 bpd during the week profiled, the lowest level in
over four weeks and down 8,000 bpd from a year ago. For the four-weeks ended
July 13, blending demand averaged 935,000 bpd, 4,000 bpd below the same period
While blender inputs were off, EIA also reported domestic ethanol stocks
down 625,000 bbl to 21.768 million bbl, the first decline a month despite a 3%
gain in production.
Plant production rose 31,000 bpd to 1.064 million bpd, 3.7% higher than the
same time in 2017. Four-week average production at 1.059 million bpd was 43,000
bpd higher than the corresponding four-weeks in 2017.
At the close, Chicago Board of Trade August ethanol futures settled
marginally lower at $1.4120 gallon while CBOT September corn futures increased
a penny to settle $3.4720 bushel.
In the New York Harbor, spot ethanol traded at $1.56 gallon, up from midday
trades done at $1.54 gallon but down 1.25cts on the day. August supply was
reported on offer at a 15cts gallon premium to Chicago, or $1.56 gallon while
September supply was discussed at 11.0cts to 11.50cts premiums to Chicago.
EIA data showed East Coast PADD 1 stocks essentially flat at 7.080 million
bbl last week, 9% lower year over year.
"It seems buyers and seller are apathetic right now at current values," an
East Coast ethanol marketer told DTN MarketWire near today's market close.
"Those that have covered New York seem to be done for now and are not bidding."
As rail manpower and equipment shortages persist, traders say the expected
late-third quarter completion of Sunoco's Mariner 2 gas liquids pipeline could
reduce ongoing stress on rail transports and demand for pressurized tank cars,
though it remains unclear whether pipeline deliveries will remain on schedule
due to ongoing protests from environmentalists and landowners along the
pipeline right of way.
In the Midwest markets, prompt ethanol at the Kinder Morgan-operated Argo
terminal in Chicago was talked at $1.4050 to $1.4150 gallon, marginally lower
on the day. Ethanol for this week delivery under Rule 11 rail terms was indexed
0.25cts lower at $1.43 to $1.44 gallon, with trades noted at $1.4350 gallon.
Regarding supply, EIA reported Midwest PADD 2 ethanol supply fell 349,000
bbl to 7.263 million bbl, leaving stocks 1.4% above the same week in 2017.
On the US Gulf Coast, spot ethanol finished 1.0cts higher at $1.54 gallon,
after a late trade of 5,000 bbl was confirmed at a 13-cent premium to Chicago.
EIA reported PADD 3 stockpiles dropped 378,000 bbl to 4.651 million bbl,
leaving supply at a roughly 12% year-over-year surplus.
In the West Coast, spot trade was thin with prices unchanged on the day at
$1.65 gallon. EIA data showed PADD V supply increased 117,000 bbl to 2.448
million bbl on the week.
2018 D6 Renewable Identification Numbers declined a penny, based on a trade
at 23.0cts while D4 2018 biomass-based diesel RINs held at 44.0cts at market
CBOT soybean futures for August delivery rose 2.6cts to settle at $842.20
per 5,000 bushel lot, while New York Mercantile Exchange August ULSD futures
settled up 2.02cts at $2.0903 gallon.
In other news, the Renewable Fuels Association today announced Executive
Vice President Geoff Cooper will assume the position of president and CEO in
October while current President and CEO Bob Dinneen will transition into the
role of RFA's Senior Strategic Advisor.
Brian Whary, 1.732.678.7739, email@example.com , www.dtn.com. (c) 2018
DTN. All rights reserved.