News that U.S. Sens. Diane Feinstein, D-Calif., and Tom Coburn, R-Okla., introduced a bill to purge corn-based ethanol from satisfying the Renewable Fuel Standard mandate has led to a steep fall in spot ethanol prices Thursday. Traders worry ethanol demand will be reduced.
A trader argued the bill has little chance of becoming law and instead attributed the price drop to overbought market conditions. New York Harbor barged December ethanol was offered 32.5 cents lower on the day at $3.00 per gallon while today transfer ethanol at the Argo terminal near Chicago traded at a $2.30 per gallon, down 9.25 cents.
George Orwel can be reached at firstname.lastname@example.org
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