Ethanol Blog

Spot Ethanol Prices Lifted by Stock Draw, RINs Spike

Spot ethanol prices in Chicago and the New York Harbor advanced on Wednesday following stepped-up buying activity after data from the Energy Information Administration showed domestic fuel ethanol supply declined 500,000 bbl or 2.1% from a record high during the week ended March 16 to 23.8 million bbl. Midwest supply was drawn down 200,000 bbl or 2.2% last week from a record high to 9.0 million. Prompt delivered supply at the Argo hub in the Chicago market traded five times during the aftermarket at $1.45 and $1.4525 gallon, up 2.25cts, with Harbor barges at $1.56 gallon, up 0.5cts.

Also, the renewable credits market rallied as "people are thinking there won't be any major changes in the Renewable Fuel Standard and they are now re-evaluating RIN values... there was pent up buying," said a trade source. 2018 D6 renewable identification numbers traded at 44.0cts, 45.0cts and 46.0cts, up 7.5cts on the day, while D4 biodiesel RINs traded at 77.0cts, up 2.0cts.

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

(CZ/)

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