Spot Ethanol Flat to Weaker in Thin Post Holiday Trade
NEW YORK (DTN) -- U.S. spot ethanol prices were flat to slightly lower in a
lackluster post-Labor Day trade session today. A lack of liquidity undermined
support for ethanol prices from supply tightness, corn gains and an open
trans-Atlantic arbitrage.
The corn market was slightly stronger on lingering support from last week's
forecast by Informa Economics that the U.S. corn crop yield will likely be
sharply lower than estimates by the United States Department of Agriculture.
December CBOT corn futures rose 1.6cts to $4.662 a bushel that boosted
October CBOT ethanol futures by 1.7cts to $1.901 gal at the close. October CBOT
ethanol futures traded at a 3.3cts premium to October NYMEX RBOB futures, which
settled 1.34cts higher at $1.9329 gal.
In the physical market, Midwest prices were little changed, with Argo
ethanol for next week delivery confirmed traded at $2.00 gal, while any-day
September delivery traded at $1.945 gal.
Nebraska ethanol for delivery this week changed hands at $1.88 and then at
$1.90 gal, while Iowa spot ethanol traded at $1.89 gal.
In the New York Harbor, prompt ethanol was bid at $2.10 and offered at $2.13
gal, with no deal reported done. That's fractionally lower than levels seen
late Friday.
A spot California trade was reported done at $2.07 gal in the morning, with
afternoon assessments reported at $2.10 to $2.12 gal on a bid/ask basis.
In the Gulf Coast, spot Dallas ethanol prices were pegged at $2.06 to $2.07
gal range, while spot Houston ethanol prices were talked at about $2.11 gal,
down 1.0cts from Friday's levels.
The market for renewable credits was slightly firmer, bolstered by recent
stronger trades for spot ethanol, with 2010 RINs trading at 2.75cts gal, up
0.006cts from Friday's value.
Spot Ethanol Prices
Market Low High Midpoint Change
New York Harbor $2.100 $2.130 $2.115 -$0.005
Chicago $2.020 $2.040 $2.030 $0.000
Houston $2.100 $2.130 $2.115 -$0.005
Dallas $2.060 $2.070 $2.065 -$0.010
Northern Calif. $2.100 $2.120 $2.110 $0.000
Southern Calif. $2.100 $2.120 $2.110 $0.000
2009 RINs $0.007 $0.010 $0.009 $0.000
2010 RINs $0.025 $0.030 $0.027 $0.006
($/gal)
George Orwel, 1.718.522.3969, george.orwel@telventdtn.com, Telvent DTN,
www.telventdtn.com. (c) 2010 Telvent DTN. All rights reserved.
