Ethanol Blog

Argo, NYH Spot Ethanol Prices Spike on Expected RFS Change

Spot ethanol prices rallied during a busy trade session Tuesday while the value of tradable Renewable Identification Numbers plunged on news of a pending executive order by President Donald Trump that changes the point of obligation in meeting the Renewable Fuel Standard from refiners to position holders at the terminal.

In a statement, Bob Dinneen, head of the Renewable Fuels Association, said he disagreed with the change, while stating RFA's priority amid the pending changes was to secure a waiver allowing for year-round sales of E15 that would potentially expand the domestic fuel ethanol market.

In cash trade, prompt transfer ethanol supply at the Argo hub in the Chicago market traded at $1.52 and $1.54 per gallon, and talked last at a $1.515 to $1.53 per gallon bid/ask range for a 4.25-cent gain. March ethanol barge at the New York Harbor was valued at $1.63 per gallon, talked last at a $1.61 to $1.63 per gallon bid/ask, up 5.25 cents.

In contrast, 2017 D6 RINs were last seen at 31.0 to 34.0 cents bid/ask range after trading as low as 30.0 cents following Monday's 47.25 cents assessment. D4 2017 RINs for biomass-based diesel traded down 5.25 cents, to 85.0 cents and 82.5 cents.

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

(ES)

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