Ethanol Blog

A trade source today said he expects U.S. ethanol prices to decline because blending economics are starting to soften. A drop in seasonal demand for gasoline this autumn could also weigh down the market for both gasoline and ethanol.

CME data show November RBOB futures' premium over November ethanol futures fell to a 93cts three-week low today. That downtrend is expected to continue as blending economics progressively weaken. "Blending economics are also not as good as they were before," said a trade source.

George Orwel can be reached at george.orwel@telventdtn.com.