Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop
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Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop
Posted 14 August 2013 in
From Bloomberg News:
Ethanol declined against gasoline as the futures slid to a 14-month low on speculation that the September corn harvest will allow companies to boost output of the biofuel.
The spread between the fuels expanded 5.64 cents to 80.25 cents a gallon a day after the Agriculture Department said domestic corn output will set a record. Ethanol for September delivery closed at a 25.6-cent premium to the October contract on the Chicago Board of Trade.
“The steep carry in September and October has producers emptying tanks of any material,” said Justin Dirico, manager of the biofuels desk at Eagle Energy Brokers LLC in New York.
Denatured ethanol for September delivery fell 1.8 cents, or 0.8 percent, to $2.14 a gallon on the Chicago Board of Trade, the lowest price since June 22, 2012. Futures have declined 2.3 percent this year.
It’s clear the RFS is working as intended – bringing consumers lower costs at the pump, while spurring farmers to feed and fuel the country.
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Bloomberg News: Ethanol prices down vs. gasoline, based on predictions of a record corn crop
