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dan45mcc

Ethanol Trading for 74 cents less than Gasoline at Chicago Board of Trade

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The Spread has widened to 74 cents

 

 

 

 

2.13 Ethanol

2.87 Gasoline

 

 

Now it is middle of winter and E85 is actually E70 in most of the Country

 

 

So that means 30% of  "E85" is actually gasoline.. 30% of 2.87 = .86 cents

Also means that 70% of "E85" is actually Ethanol..70% of 2.13 =  1.49  for a

 

 

  total E85 wholesale price of $2.35

 

 

So the "real" spread is $2.87 - $2.13= 52 cents

 

keep in Mind this is only the Chicago Board of Trade..but it is a good representation of the prices and gives you an idea of how much less E85 should be selling for at Retail..all other things like transport taxes etc being roughly equal.

 

 

 

 

So yeah we should be seeing roughly 50 cent spread at the retail level right now as all the other added costs are equal

 

 

..That's pretty much exactly what I am seeing at our best prices station in town..

 

 

50 cents $2.84    E85  $3.34 Gas  15%        02/01  Saint Cloud  First Fuel Bank, 100 17th Ave S  Minnesota  Dan (1603)

 

 

 

 

Outlaw/Phil.. is that about right

 

 

What do think the actual blending cost is ?  4-5 cents a gallon?

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Yes Dan- that is about right. I am really frustrated that KT around here (the only one in my area) is 3.15 for E85 and 3.39 for E10. They obviously are not even trying to buy and sell right unless the object is to kill E85 and discourage automakers from making more FFV's-- but then KT never priced right around here.

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unless the object is to kill E85 and discourage automakers from making more FFV's--

 

unfortunatly that is the prime motivation with a LOT of e85 stations nationwide... use public funds to help pay for new infrastructure, then use those pumps to help kill e85...

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