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Exxon Mobil Corporation Message Board

  • bluecheese4u bluecheese4u Sep 6, 2013 2:07 PM Flag

    Ethanol Declines Versus Gasoline on Outlook for Ample Feedstock

    Ethanol Declines Versus Gasoline on Outlook for Ample Feedstock

    By Mario Parker - Sep 6, 2013 10:09 AM MT .

    Ethanol declined against gasoline on speculation that this fall’s corn harvest will bring ample supply of the biofuel feedstock.

    The spread, or price difference, expanded 3.35 cents to 98.45 cents a gallon as Bloomberg survey of analysts before the U.S. Agriculture Department updates its production forecast Sept. 12 that the harvest may be a record 13.64 billion bushels, 27 percent more than a year earlier. One bushel of the grain makes at least 2.75 gallons of ethanol.

    “While yields are down a bit it’s still a huge crop,” said Justin Dirico, manager of the biofuels desk at Eagle Energy Brokers LLC in New York. “That’s why the bulls haven’t really come out. It’s wait and see.”

    Denatured ethanol for October delivery fell 0.2 cent to $1.883 a gallon on the Chicago Board of Trade. Futures have dropped 14 percent this year.

    Gasoline for October delivery gained 3.15 cents, or 1.1 percent, to $2.8675 a gallon on the New York Mercantile Exchange. The contract covers reformulated gasoline, made to be blended with ethanol before delivery to filling stations.

    Corn for December delivery climbed 2.25 cents, or 0.5 percent, to $4.6325 a bushel in Chicago. September corn declined 3 cents to $4.865.

    Refiners are required to use 13.8 billion gallons of ethanol this year. Each batch of ethanol is given a Renewable Identification Number, or RIN, to help the government track compliance. RINs can be traded among companies.

    Corn-based ethanol RINs were unchanged at 69 cents, data compiled by Bloomberg show. Advanced RINs, which cover biodiesel and Brazilian sugarcane-based ethanol, held at 74 cents.


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