Bearish supply reports by federal agencies triggered selling pressure in the spot market for ethanol and tradable renewable compliance credits known as Renewable Identification Numbers.
The Energy Information Administration reported ethanol stocks rose 300,000 bbl to 17.8 million bbl in the week-ended April 5, as production at U.S. ethanol plants ramped up 47,000 bpd or 5.5% to 854,000 bpd. "The market was not aware of this much capacity restart," said a broker with a major trading house in New York.
George Orwel can be reached at email@example.com.
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