Chicago spot ethanol prices rallied for a third straight day Tuesday amid concerns supply will tighten once plants in the Midwest start their maintenance program early next month.
To prepare for a period of lower plant runs in September, blenders are actively stocking their storage, especially at the Kinder Morgan-operated Argo terminal in the Chicago market.
In the physical market, prompt ethanol supply at Argo traded at $1.57 per gallon, up 1.0 cent on the session, with swaps trading at $1.545 per gallon.
In the rail market, ethanol traded under Rule 11 terms for this week shipment traded at $1.53 per gallon, 1.25 cents higher on the session.
George Orwel can be reached at firstname.lastname@example.org
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