DTN Daily Ethanol Comments
Ethanol RINS and ethanol cash prices were lower. December corn closed down 2 3/4 cents per bushel at $4.17, and March corn was down 3 cents at $4.34 1/2.
The Energy Information Administration reported on Wednesday that for the week ending Sep. 5, overall ethanol production in the United States averaged 1.105 million bpd, up 30,000 bpd versus last week and 25,000 bpd, or 2.3% higher than in the same week last year. Four-week average output at 1.097 million bpd was 19,000 bpd above the same four weeks last year. Midwest ethanol production averaged 1.047 million bpd, up 26,000 bpd versus last week and 28,000 bpd, or 2.7% higher than in the same week last year. Four-week average output at 1.038 million bpd was 20,000 bpd above the same four weeks last year.
Ethanol blending activity in the U.S. averaged 880,000 bpd, down 35,000 bpd versus last week and 12,000 bpd, or 1.4% lower than in the same week last year. Four-week average blending demand at 913,000 bpd was 4,000 bpd below the same four weeks last year.
Domestic ethanol inventories ended the week at 22.837 million bbl, up 273,000 bbl versus last week and 877,000 bbl, or 3.8% lower than in the same week last year.
In Sept. 9 compliance credits trade, 2025 D6 renewable identification numbers (RINs) were down $0.0250 at $0.9590, and 2024 D6 RINs were down $0.0280 at $1.9330. The 2025 D4 RINs were down $0.0525 at $0.9855, and 2024 D4 RINs were down $0.0160 at $0.9400.
Spot ethanol cash prices were lower, with New York Harbor down $0.0300 at $2.0675, prompt-delivered ethanol to Kinder Morgan’s Argo terminal in Chicago was down $0.0500 at $1.9750, and Chicago rail via Rule 11 was down $0.0250 at $2.0000.
The Daily Ethanol State Average cash price is $2.2366 per gallon, down 0.0272 versus the prior trading day.
December corn closed down 2 3/4 cents per bushel at $4.17, and March corn was down 3 cents at $4.34 1/2, closing lower with losses in the wheat market. One of the main factors pressing the corn market is the upcoming USDA WASDE report on Friday. Dow Jones survey of 17 analytics/advisory firms shows the average trade guess for the national average corn yield coming in at 186.1 bpa, which would be a 2.7 bpa cut from the report a month ago. The corn yield could still take a hit as the maturity of corn isn’t even close to the finish line. Dry weather in the ECB nearly all of August and an early freeze in parts of North Dakota and Minnesota may still affect the final yield.
NYMEX WTI October futures contract was up $1.04 at $63.67 per bbl, while the November futures contract was up $1.06 at $63.35 per bbl, closing higher for a third day Wednesday. The market is reacting to the geopolitical tensions involving Russia and Israel for now, and putting aside the large build in inventory. The EIA report today said that last week, crude oil inventories rose by 3.9 million barrels and gasoline inventories rose by 1.5 million bbl.
October RBOB closed up $0.0155 per gallon at $2.0080, and November RBOB was up $0.0179 per gallon at $1.9495, closing higher with crude oil today and despite the build in inventory last week. The Sept. 10 AAA national average gas prices are $3.193 per gallon for regular, $3.705 for diesel and $2.593 for E85.
Mary Kennedy can be reached at mary.kennedy@dtn.com
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