Ethanol Blog
Rick Kment DTN Analyst

Friday 06/07/13

Ethanol-to-RBOB-Gasoline Price Spread Widens

The ethanol-to-RBOB-gasoline futures price spread took a significant shift over the last week due to the recent pressure in ethanol markets and the expiration of June ethanol contracts. This move in the ethanol market follows the recent rebuilding of inventory levels from three-year lows, as well as the potential that buyers may be focusing on limited demand. The ethanol market currently is holding at a 36-cent-per-gallon discount compared to front-month RBOB gasoline futures. But this is significantly decreased from the 6-cent discount seen earlier in the week. This will not likely limit any additional ethanol from being blended over the short term, but could cool the jets of some buyers as they look at a more uncertain price and demand movement in the ethanol complex through the rest of the summer.

Rick Kment can be reached at rick.kment@telventdtn.com

Posted at 3:44PM CDT 06/07/13 by Rick Kment
Comments (1)
Where are the Blender Pumps .NO 2 producer can't seem to want to sell it's own product.
Posted by melvin meister at 6:32AM CDT 06/10/13
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