Spot Ethanol Prices Extend This Week's Losing Streak
WASHINGTON, D.C. (DTN) -- Spot ethanol prices across the main trade markets
continued lower Wednesday afternoon after government data showed ethanol
inventories in the United States posted a sizable build during the week ended
Aug. 9 while domestic production held higher for the second consecutive week.
Energy Information Administration data mid-morning reported national ethanol
supply increased 766,000 bbl last week to 23.883 million bbl, a 3.9% surplus
against the corresponding week a year ago. Ethanol supply in the U.S. has
increased six times in the last seven weeks, with notable gains reported in
Agency data showed output at U.S. production plants rose for a second
straight week, up 5,000 bpd or 0.5% in the week ended Aug. 9 to 1.045 million
bpd. Net ethanol inputs by refiners and blenders increased 22,000 bpd or 2.3%
to 967,000 bpd, 2% more than the same week in 2018.
Chicago Board of Trade September corn futures eroded further, tumbling 7cts
to $3.590 a bushel on Wednesday, a fourth consecutive loss. Corn markets remain
pressured by the recently released and very bearish USDA Crop Production
Report, which showed a much larger than expected corn acreage and yield for
this year's crop.
CBOT ethanol futures moved 3.3cts lower to $1.255 a gallon and New York
Mercantile Exchange September RBOB futures plunged 6.06cts to $1.6758 a gallon
amid broad selling across the oil complex.
In physical trade, spot product in Argo terminal in Chicago fell 7cts to
$1.26 gallon, while New York Harbor spot ethanol was down 2.50cts to $1.4050
West Coast product fell 2.50cts to $1.52 gallon and spot ethanol in Phoenix
was last discussed at $1.500 gallon. Sources pegged spot ethanol in Gulf Coast
1.50cts lower at $1.41 a gallon.
Wednesday afternoon, sources said Renewable fuel D6 RINs 2019 were discussed
0.12cts lower at 11.88cts, while 2018 D6 RINs were pegged at 4.88cts. D4 2019
biomass-based diesel RINs gained a penny to 42.50cts and D4 2018 RINs indexed
0.50cts higher at 32cts.
Liubov Georges, 1.646.359.4088, email@example.com, www.dtn.com. (c)
2019 DTN. All rights reserved.