Spot ethanol prices rallied Thursday with Chicago area cash prices trading at a 4-1/2 month high, boosted by strong short-erm demand for the domestic and export markets. This is the first week since May that the terminal and rail markets in Chicago have traded at parity, which trade sources indicate reflects strong near-term fundamentals.
Prompt ethanol supply at the Argo hub traded Thursday at $1.67 and $1.675 gallon, up 1.25cts for the day, and at the highest cash prices since mid-June. Chicago ethanol supply traded under Rule 11 for prompt shipment also traded at $1.67 and $1.675 gallon, up 1.0cts on the session. November ethanol barges at the New York Harbor were seen at a $1.745 to $1.77 gallon bid/ask, up 4.0cts. Arizona spot prices were seen up 4.5cts at $1.775 gallon.
George Orwel can be reached at firstname.lastname@example.org.
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