US Spot Ethanol Prices End Lower; RINs Slump on RFS Talk
2/23 6:41 PM
US Spot Ethanol Prices End Lower; RINs Slump on RFS Talk NEW YORK (DTN) -- Spot ethanol prices ended lower on the day and on the week, particularly in the Chicago market, pressured by a force majeure declared on loadings in Chicago that could last until Monday (2/26), said a trade source. The disruption was caused by heavy rains that slowed down barge movement on the Chicago River, affecting prompt supply at the Argo terminal and ethanol traded under Rule 11 terms for this week's shipment, the source said. This comes a day after the Energy Information Administration reported total ethanol stocks fell last week by 100,000 bbl to 22.8 million bbl. However, ethanol stocks in the Midwest rose 100,000 bbl or 1.2% to 8.3 million bbl last week and 200,000 bbl or 2.5% higher than a year ago. Argo prompt supply in the Chicago market traded eight times during the aftermarket window at $1.4675, $1.4680 and $1.47 gallon, down 1.75cts on the day. Rule 11 ethanol for this week transport traded at $1.46 gallon, down 1.0cts. Swaps traded at $1.47 gallon for March and $1.48 gallon for April. February barge delivered ethanol at the New York Harbor was valued at $1.565 gallon, down 1.5cts, while March barges were pegged at $1.57 gallon. On the West and Gulf coasts, next week ethanol shipment in California was assessed at $1.67 gallon, down 1.0cts, while Houston spot prices were unchanged at $1.555 gallon, down 1.0cts. In biodiesel trade, B100 traded in the Harbor and Chicago at $3.225 for loss of 10.0cts. The compliance credit market plunged on reports the Trump administration was planning two meetings to discuss adjustments to the Renewable Fuels Standard, the 2015 law under which biofuels are blended with gasoline and diesel. The first meeting, held today, was reportedly led by Agriculture Secretary Sonny Purdue and Environmental Protection Agency Administrator Scott Pruitt. The second meeting is scheduled for Tuesday (2/27) with President Trump, according to reports. As a result, 2017 D6 renewable identification numbers traded at 58.5cts while 2018 D6 RINs traded at 59.5cts, down 5.0cts. 2017 D4 biomass-based diesel RINs traded at 80.0cts for a 2.0cts loss while 2018 D4 RINs traded at 82cts. On the New York Mercantile Exchange, March RBOB futures rallied 4.28cts to $1.8085 gallon. March Chicago Board of Trade corn futures eased 0.4cts to $3.662 a bushel. March ethanol futures slipped 1.4cts at $1.473 gallon. Spot Ethanol Prices Price Change Market Low High Last vs 2/22 vs 2/16 New York Harbor $1.5500 $1.5700 $1.5600 -$0.0150 -$0.0150 Chicago (Terminal) $1.4650 $1.4700 $1.4675 -$0.0175 -$0.0125 Chicago (Rule 11) $1.4500 $1.4700 $1.4600 -$0.0100 $0.0000 Houston $1.5500 $1.5600 $1.5550 -$0.0100 -$0.0200 Northern Calif. $1.6600 $1.6800 $1.6700 -$0.0100 -$0.0100 Southern Calif. $1.6600 $1.6800 $1.6700 -$0.0100 -$0.0100 Phoenix $1.5500 $1.5700 $1.5600 -$0.0050 $0.0400 Pacific Northwest $1.5800 $1.6000 $1.5900 -$0.0050 -$0.0100 2017 D6 RINs $0.5800 $0.5900 $0.5850 -$0.0700 -$0.1000 2018 D6 RINs $0.5900 $0.6000 $0.5950 -$0.0750 -$0.1000 ($/gal) George Orwel, 1.718.522.3969, george.orwel@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.