Ethanol Blog

Spot Ethanol, RINs Tumble as Plant Production seen Rising

Spot prices for physically delivered ethanol and for compliance credits called renewable identification numbers tumbled on Monday on expectation domestic production would increase as plants ramp up runs in the second quarter. U.S. data for the week-ended March 16 showed a 24,000 bpd jump in domestic output, to 1.049 million bpd, while up 0.5% year-on-year.

In physical trade, prompt delivered ethanol at Argo in the Chicago market traded at $1.4275 per gallon, down 1.75 cents, while New York Harbor April barges were valued at around $1.53 per gallon, down 1.87 cents.

In the credits market, 2018 D6 RINs traded at 48.0 cents for a 4.0-cent loss, while 2018 D4 RINs traded at 70.0 cents for a 9.5-cent loss.

April ethanol futures on the Chicago Board of Trade slumped to a $1.427-per gallon six-week low on the spot continuation chart.

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

(ES/)

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