Ethanol Blog

Spot ethanol prices in California were assessed 2.25cts higher at $1.83 to $1.84 gallon early Monday afternoon, a 15-month high, amid rail issues, while uncertainty remains on the availability of Brazilian ethanol supply in August. Ethanol traders said the movement of unit trains throughout the United States remains an issue, as a shortage of trained railroad operators and available engines frustrate delivery logistics. As a result of the rail slowdown, West Coast buyers are willing to pay higher prices for larger shipments when available, according to analysts.

Phoenix spot ethanol was discussed midday a penny higher with discussions at a $1.59 to $1.61 gallon range. Traders said Phoenix's proximity to an ethanol plant and its ability to use trucks to satisfy demand reduces the need for rail delivered supply that is usually priced at a premium and oftentimes late.

Brian Whary can be reached at brian.whary@dtn.com.

(CZ)

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