Ethanol Blog

Higher Spot Over Futures Slows Physical Ethanol Trades

Myke Feinman
By  Myke Feinman , Refined Fuels Reporter

The physical spot market for ethanol has been "quiet" through midday Thursday according to trade sources, which one analyst links to higher spot prices for the blendstock compared to futures.

"On physical, there was a lot of disappointment over EIA stats," said Jerrod Kitt, strategist for the Linn Group, Chicago, Illinois. "For two weeks analysts thought (producers would) coax out a few more gallons. The physical demand slowed so much, they are (a few cents) over futures already."

He said as physical ethanol starts to lose competitiveness, the only reason to purchase it "at this point is to get the RINs."

Myke Feinman can be reached at myke.feinman@telventdtn.com.

P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
P[] D[728x170] M[320x75] OOP[F] ADUNIT[] T[]
P[L2] D[728x90] M[320x50] OOP[F] ADUNIT[] T[]

Comments

To comment, please Log In or Join our Community .