US Spot Ethanol mostly Up as Output DN more-than-Expected
8/15 4:57 PM
US Spot Ethanol mostly Up as Output DN more-than-Expected OLD BRIDGE, N.J. (DTN) --- U.S. spot ethanol prices were mostly higher late Wednesday following data from the Energy Information Administration showing ethanol plant production fell a more-than-expected 28,000 bpd last week. Midmorning EIA reported domestic ethanol production averaged 1.072 million bpd during the week-ended Aug. 10 that compared with expectations for a 15,000 bpd decline to 1.085 million bpd. "The week before, (production) increased to such an extent that it reset expectations," one ethanol trader told DTN. "It was good that it wasn't near a record again." Plant production for the week-ended Aug. 3 was up 36,000 bpd to 1.100 million bpd, the highest output rate for 2018, and just below a record 1.108 million bpd reported in early December 2017. While down, output remains 1.2% higher than the same week in 2017, with four-week average production of 1.077 million bpd 5.5% less than the 1.021 million bpd average for the same four-week period last year. Ethanol stocks increased nationally by 5.5% or 1.2 million bbl to 23.017 million bbl for the week profiled, with all PADDs except the Midwest PADD 2 experiencing a build. In PADD 2, ethanol supplies declined 80,000 bbl to 7.730 million bbl, although 5.5% higher than a year ago. In futures trade, Chicago Board of Trade September corn futures settled down 0.6cts at $3.614 bushel, with New York Mercantile Exchange September RBOB futures 3.67cts lower at $1.9974 gallon. CBOT September ethanol futures settled down 1.2cts at $1.357 gallon. In physical markets, Chicago spot ethanol ended up 0.5cts at $1.3625 gallon, with Chicago Rule 11 down 0.5cts at $1.3550. New York Harbor spot ethanol traded 0.5cts higher at $1.4550 gallon. In the Southwest, spot ethanol in Phoenix is assessed 0.75cts gallon higher at $1.4975 gallon, with trucks trading at $1.51 gallon. In California, spot ethanol traded 0.5cts higher at $1.6150 gallon. D6 2018 RINs traded up 0.5cts at 20.50cts, and D6 2017 RINs traded 1.5cts higher at 18.0cts. D4 2018 biomass-based diesel RINs were assessed 0.75cts higher with bids at 42.50cts and offers at 43.0cts, while D4 2017 RINs were assessed unchanged at 27.50cts. Brian Whary, 1.732.678.7739, brian.whary@dtn.com , www.dtn.com. (c) 2018 DTN. All rights reserved.