Ethanol Blog

Spot Ethanol Prices Pressured Lower by Excess Supply

By  George Orwel

Spot ethanol prices extended Monday's losses in early trade Tuesday ahead of weekly data that's expected to show a glut in ethanol supply while demand remains sluggish.

"(You) can't bank on producers trimming back (output) ... (we) need better domestic demand and/or exports to balance things out," said a source.

Prompt Argo ethanol talked at a $1.58 to $1.63 PER gallon bid/ask, down 1.5 cENts on the day. October barges are talked in a $1.67 to $1.71 per gallon bid/ask spread, down 0.5 cents. Prompt Arizona ethanol was talked at $1.71 per gallon, down 3.0 cents.

George Orwel can be reached at george.orwel@telventdtn.com.

(ES)

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Daniel Hiller
9/24/2014 | 5:19 AM CDT
In the long term the demand for ethanol above the blend requirements must be developed. The best way is to bring the engine designed by Roberto to use high octane fuel to market. The research for this engine was paid for by the US and Brazilian ethanol producers two years ago. It was reported in the Ethanol weekly news letter in July of last year. The engine is far more efficient than the current gasoline engines and matches the power curve of a diesel without the pollution problems. I think our first targets of use should be agriculture, railways and repowering trucks that operate in the cold climates. I think it would be better then the current move to natural gas as a mobile fuel due to the amount of power in each gallon. It was designed to burn fuel containing 85% ethanol. I like to see if the gasoline in the mixe could be replaced with bio diesel because the biodiesel has more btu than gasoline. I think farmers if given the choice would buy machinery that uses biofuels that is produced from their crops rather than crude oil.