Spot Ethanol Ends Lower on Oversupply, Lower Corn Futures
12/14 5:07 PM
Spot Ethanol Ends Lower on Oversupply, Lower Corn Futures NEW YORK (DTN) -- Spot ethanol prices ended lower across the board Thursday afternoon amid high available supply and lower corn futures on the Chicago Board of Trade. The Energy Information Administration reported on Wednesday that ethanol stocks were up 17.3% on the year at 22.4 million bbl as plant output rose 4.7% year-over-year to 1.089 million bpd. December corn futures settled 0.4cts lower at $3.484 bushel while New York Mercantile Exchange January RBOB futures settled 2.40cts higher at $1.6707 gallon. In ethanol paper trade, January ethanol futures fell 2.1cts to $1.274 gallon, settling at a 39.67cts discount to RBOB futures. In the physical ethanol market, prompt delivered ethanol at the Argo terminal in the Chicago market traded about ten times during the aftermarket window at $1.2680, $1.27, $1.2725 and $1.275 gallon, ending down 2.5cts on the day. In the rail transportation market, ethanol trading under Rule 11 terms was seen at $1.255 gallon for a 1.5cts loss. On the New York Harbor, December barged ethanol to Sewaren traded once at $1.3575 and twice at $1.36 gallon, down 2.25cts on the day. In Houston, this week delivered ethanol supplies were penciled at $1.345 gallon, down 2.5cts. Northern California spot prices were pegged at $1.47 gallon, down 2.0cts on the day. In biodiesel cash trade, B100 traded unchanged at $3.375 in Chicago and the New York Harbor while Houston product traded at $3.225 gallon. In the compliance credit market, 2017 D6 conventional renewable RINs traded down 1.0cts at 74.5cts. 2017 D4 biomass-based diesel RINs traded at 86.0cts, up 1.0cts on the day. The RIN market has been volatile over the past two weeks amid concern over possible changes to the Renewable Fuel Standard spurred by complaints from lawmakers representing states with oil refineries. The White House is attempting to broker a compromise between two opposing groups of lawmakers, with Texas Senator Ted Cruz seeking changes to the RFS that provide relief from the high cost of compliance by refiners. Refiners that don't blend enough renewable fuels into their oil products are forced to buy RINs, placing them at a competitive disadvantage in the low margin business. Iowa Senator Chuck Grassley leads the group vowing to protect the integrity of RFS. George Orwel, 1.718.522.3969, george.orwel@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.