Ethanol Blog

Friday 02/15/13

RBOB Gasoline to Ethanol Spread Doubled
Within the last month, the RBOB gasoline to ethanol price spread has doubled due to aggressive price support and expected demand growth in the gasoline complex while corn futures prices are working lower and ethanol production is starting to rise.[Read Full Blog Post]
Posted at 5:06PM CST 02/15/13 by Rick Kment | Post a Comment
Comments (1)
If demand for spring and summer is strong, the price of ethanol would be up and the margin narrows. The argument does not make the case for a wider margin, specially if the major input cost -corn is up. My reading is of a few plants coming back online is the result of a sourcing switch from Brazilian imports to a period where we will make a little more. With the onesy, twosy plants coming back online, to assume that there will be a glut is early to make this call: total inventory is headed down and crush margin is still negative... 15c loss per gallon on 100million is still 15 million dollar loss. Real money.
Posted by Eddy Lahens at 7:16PM CST 02/15/13
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