Spot Ethanol Prices Extend This Week's Losing Streak
8/14 4:49 PM
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 destination markets. 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 gallon. 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, liubov.georges@dtn.com, www.dtn.com. (c) 2019 DTN. All rights reserved.
 
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