Ethanol’s discount to gasoline narrowed to a four-month low on speculation that the slowest pace of corn planting since 1986 will make it difficult to replenish supplies.
The price difference, or spread, shrank 3.75 cents to 21.9 cents a gallon. The Agriculture Department said in a report yesterday that 5 percent of the crop was planted as of April 28, compared with a five-year average of 31 percent. Ethanol stockpiles are at the lowest for this time of year in records dating to June 2010, according to data compiled by Bloomberg. Renewable Identification Numbers, or RINs, surged.