After trading at $1.495 per gallon, ethanol cash prices at the Argo terminal in the Chicago market reversed a morning gain on Monday with a trade at $1.47 per gallon for midweek delivered product early afternoon, down 1.5 cents.
The decline was triggered by lower futures trade for the March RBOB contract on the New York Mercantile Exchange and for March corn futures on the Chicago Board of Trade.
Blending demand is seasonally weak and domestic ethanol supply has increased to a nine-month high of 21.9 million bbl through the week-ended Jan. 27, according to data from the Energy Information Administration.
A trade source indicated demand for ethanol exports has underpinned price support for the domestic market despite seasonally weak fundamental factors.
George Orwel can be reached at firstname.lastname@example.org.
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