April 27—Ethanol markets remained listless through April, despite a stubborn bull run by gasoline. That also opened up fat blending economics for ethanol in just about every region.
When all was said and done, Chicago ethanol tended into the low $2.20s per gallon as April ended. Some stubborn offers at $2.25 per gallon tried to build off earlier deals at $2.24 per gallon, but the last word had those offers also tapering off. May offers ran 1 to 2 cents lower than prompt, while next-month buyers looked under $2.20 per gallon.

Against the backdrop of surging gasoline, ethanol offered an extraordinary value for fuel blenders. At one point late in the month, Chicago ethanol available at $2.25 per gallon ran 61 cents less than spot unleaded in the city, with the federal blending credit included. Even Chicago unleaded for ratable May, available at $2.30 per gallon, sported a 59-cent premium versus May ethanol, available at $2.22 per gallon at the time.

Despite high gasoline prices and extremely healthy blending economics, it didn't shake ethanol markets out of the doldrums. Spot trading remained thin, and market sources noted a lack of traditional trade marketers, apparently ceding ground to brokers and newer trade players.

At the rack, splash blenders generally found ethanol moving up in April, though most of those gains stalled by the latter third of the month. On average, Iowa ethanol postings were up more than 9 cents over the month, entering May at $2.36 per gallon. At the same time, most areas showed more modest gains, with Nebraska adding 4 cents to average $2.40 per gallon and Illinois racks at $2.385 per gallon, picking up less than a penny.

For more information, contact OPIS Fuel Ethanol Report at (888) 301-2645, ext. 2478.