U.S. spot ethanol prices weakened in a choppy early session Thursday under pressure from falling New York Mercantile Exchange RBOB futures.
"Ethanol is off with RBOB/gasoline and the oil complex," said David Thompson, vice president of Powerhouse, a brokerage firm. "Crude continues to position for a downside breakout, and is pressuring the heat/gas in the process.
The trader said the ethanol discount to gasoline simply does not need to go wider: i.e. the sharper discount will not extract any additional incremental demand that is not there already at 85 to 90 cents per gallon.
October New York Harbor barged ethanol ...