Bloomberg News: Ethanol’s Discount to Gasoline Expands on Outlook for Ample Corn
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Bloomberg News: Ethanol’s Discount to Gasoline Expands on Outlook for Ample Corn
Posted 22 August 2013 in
From Bloomberg News:
Ethanol’s discount to gasoline expanded the first time in a week on speculation that next month’s corn harvest will yield ample supply of the biofuel feedstock and reduce costs for producers.
The spread, or price difference, widened 2.75 cents to 71.18 cents a gallon at 12:03 p.m. New York time, as participants in the annual Professional Farmers of America Midwest crop tour estimated higher yields in corn-producing states such as South Dakota and Ohio after inspecting fields. One bushel of corn makes at least 2.75 gallons of ethanol.
“Medium to long-term, it looks like there will be plenty of corn,” said Justin Dirico, manager of the biofuels desk at Eagle Energy Brokers LLC in New York.
With yet more reports of ethanol’s discount compared to gasoline, it is clear that the RFS helps ensure lower costs to consumers as well as the ability to both feed and fuel across the country.
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Bloomberg News: Ethanol’s Discount to Gasoline Expands on Outlook for Ample Corn
