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Adams, NE | 18 days of supply is about the uncle point before huge inversions/margins kick it. That seems like a reasonable bottom.
2013 rins are creeping higher. Buyers are nervous after many got stung on fradulent rins in the biodiesel market.
The mandate is in place as we sell to our competition. Big oil would rather pick up a $1/gallon on the crack spread then make 20 cents per gallon on the blending of ethanol and making a lower octane gasoline. Can the fuel market give up its ethanol for blending lower octane gasoline and have a minimal impact to the consumer? I doubt it.
I'd love a free market, but big oil's oligopoly will not allow that to happen.
Its a conundrum. The US ag industry did not need a short crop this year. | |
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Best be paying attention to E -RBOB spread
