Spot ethanol prices rose again early Wednesday on talk of strong export demand, increased speculative activity and expectations that Thursday's U.S. Department of Agriculture report will show a lower corn supply estimate than previously thought.
In addition, a report from the U.S. Energy Information Administration issued midmorning Wednesday showed blending activity surged to a six-week high of 875,000 bpd during the week-ended Feb. 3, which coincided with a 630,000 bpd surge in implied gasoline demand to 8.941 million bpd -- the highest demand rate since the week before Christmas.
In cash trade, prompt delivered product at Argo terminal in the Chicago market was talked at $1.56 to $1.59 per gallon for gain of 2.5 cents. Product for prompt shipment traded under Rule 11 was talked at a $1.55 to $1.58 per gallon bid/ask, up 3.5 cents. A February barge at the New York Harbor traded at $1.645 per gallon for a 2.5-cent gain on the session.
George Orwel can be reached at email@example.com.
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