Ethanol Prices Hold Steady as Blending Margins Remain Attractive

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The Octane Gap

Even with oil prices falling, the cost of petroleum-based aromatics remains high. Refiners are utilizing maximum allowable ethanol inclusion rates to meet summer gasoline specifications cost-effectively.

Market Insulation

Ethanol is currently trading on its own agricultural and regulatory fundamentals, largely ignoring the geopolitical whiplash impacting the broader energy complex.