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Mascoutah, Illinois | We have seen ethanol spreads of almost a dollar under RBOB at different calendar dates this year.
On September 2, December RBOB closed at $2.49 and December ethanol at $1.88 making the spread 61 cents.
Flash forward to today's close: December RBOB closed at $2.10 and December ethanol at $1.70 making the spread 40 cents.
I have two questions for those who are verse in the ethanol market.
1. How much if any does the spread affect the margins?
2. If RBOB were to trade cheaper than ethanol, what would this scenario look like for the producers of ethanol?
On a technical basis, we could see RBOB make it into the $1.60-$1.65 area before putting in a bottom. | |
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Anyone notice the RBOB vs. Ethanol spread?
