Ethanol Blog

U.S. spot ethanol prices weakened in a choppy early session Thursday under pressure from falling New York Mercantile Exchange RBOB futures.

"Ethanol is off with RBOB/gasoline and the oil complex," said David Thompson, vice president of Powerhouse, a brokerage firm. "Crude continues to position for a downside breakout, and is pressuring the heat/gas in the process.

The trader said the ethanol discount to gasoline simply does not need to go wider: i.e. the sharper discount will not extract any additional incremental demand that is not there already at 85 to 90 cents per gallon.

October New York Harbor barged ethanol was talked 1.0 cent lower at $2.25 per gallon, while ethanol transferred today at the Argo hub near Chicago was talked unchanged at a $2.10 to $2.12 per gallon bid/ask.

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

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