Ethanol’s discount to gasoline hits seven-month low

Across the US, ethanol demand may slump as the discount to gasoline narrows to the smallest in seven months, just 17 cents compared to $1.11 seen at the end of September. That shrinking discount will make E85 less economically viable. Even if the discount disappears completely, RFS will still have to be satisfied so there will still be demand, there just won’t be extra demand.