Ethanol Blog

Spot ethanol prices were higher in the Chicago area during a thinly traded early session Monday, with inadequate railcar capacity exacerbated by wet weather conditions that's keeping production from being shipped from plants in the Midwest.

"There's shortage of (supply) upfront ... in the prompt market because railroads aren't performing,” said a trader. Prompt delivered ethanol at the Argo hub was talked wide at a $2.65 to $2.80 per gallon bid/ask, valued last at $2.70 per gallon for a 2.5 cents gain. Chicago ethanol traded under Rule 11 for this week shipment was pegged at a $2.50 to $2.52 per gallon bid/ask, up 2.0 cents.

George Orwel can be reached at george.orwel@telventdtn.com

(ES)

© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.