Ethanol Blog

Chicago Ethanol, RINs Trade Lower on High Supply, Sentiment

Spot ethanol prices were discussed lower in Chicago early afternoon Tuesday amid expectations the Energy Information Administration midmorning Wednesday would show another weekly build in ethanol stocks, with domestic supply last reported at a 21.7 million bbl nine-month high on Jan. 20.

Today delivered ethanol at the Argo hub in the Chicago market traded at $1.44 per gallon and was later seen at $1.435, down 0.5 cent. In the rail market, Rule 11 for shipment this week traded at $1.415 per gallon, down 1.0 cent.

In the compliance market, 2016 and 2017 D6 Renewable Identification Numbers traded at 45.0 cents, a fresh 14-month low, down 7.5 cents, while 2016 and 2017 D4 RINs for biomass-diesel traded at 85.0 cents and 97.0 cents, respectively, down 4.5 cents.

RINs were again under pressure as traders recalibrate expectations for the Renewable Fuel Standard under the Trump Administration after Donald Trump last week froze recently published regulations, which included this year's Renewable Volume Obligation.

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

(ES)

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