U.S. spot ethanol prices were discussed mixed with an upside bias in a lackluster session Friday with Chicago, New York Harbor and West Coast cash markets moving higher while values in Houston eased.
While ethanol stocks are at a 23.7 million barrel (bbl) record high as of March 31, blending demand is on the rise, with ethanol tracking the gasoline market ahead of the summer peak driving season. This is reflected in the forward curves for NYMEX RBOB and CBOT ethanol futures that show the two markets in backwardation.
In cash trade, prompt ethanol supply at Argo hub in the Chicago market was talked at a $1.585 to $1.60 gallon bid/ask spread, up 1.75 cents on the session. April barged ethanol at the New York Harbor was discussed at a $1.675 to $1.695 gallon bid/ask spread, up 1.5 cents on the session. Arizona spot prices traded at $1.70 gallon for a 3.0-cent session gain.
George Orwel can be reached at email@example.com
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