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Adams, NE | RBOB-Ethanol spread does not matter for ethanol margins. Blenders are going to use 10% ethanol regardless of the margin to blend ethanol. Demand for ethanol is fixed at 10% of gasoline demand. Refineries and the fuel infrastructure is built for e-10, not conventional gasoline. The switch back to conventional takes time and would require ethanol to be +1.00 gasoline for 6 months before they would change to conventional. The day to day changes in gasoline demand have a much greater impact on margin (along with imports) than the RBOB-ethanol spread. | |
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May/Partner
