Ethanol Prices Drift Lower on Weak Corn and Gasoline Markets

Market Performance

Ethanol is down 0.48% on the day and over 9% for the month. The premium for ethanol over gasoline has narrowed, reducing the economic incentive for blenders. Additionally, global export prices to key destinations like Southeast Asia have softened, reflecting ample global supply.

Feedstock Spreads

The spread between ethanol and its primary feedstock, corn, remains tight. Producers are relying on co-product values to maintain positive margins. FOB prices at key hubs like Houston have also drifted lower, confirming the lack of aggressive buying interest in the physical market.