Ethanol’s discount to gasoline narrowed for a second day on concern that tight corn supply before September’s harvest will force producers to cut output.
The spread, or price difference, contracted 0.85 cent to 67.76 cents a gallon after the Agriculture Department estimated corn stockpiles will be 26 percent lower than a year earlier. Ethanol production is below average for this time of year, according to data compiled by Bloomberg.Continues the theme that seems to be developing: bad news for ethanol. Customers don't want it. Now the spread makes it less desirable. EPA looking at revising mandate down.
I guess all good things must come to an end.
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