U.S. spot ethanol prices edged higher Thursday in Chicago and New York Harbor markets on gains by Chicago Board of Trade corn futures and data issued Wednesday by the U.S. Energy Information Administration showing blending demand up 2.2% in the week ended April 21 at 932,000 bpd, while 1.5% higher on the year. Regionally, blending demand for the Midwest region was up 4.1% for the week reviewed at 251,000 bpd, and up 1.2% year-on-year. East Coast blending demand was up 2.4% for the week at 337,000 bpd, but down 1.5% on the year.
In cash trade, prompt fuel ethanol supply at Argo was pegged 1.5cts higher at $1.60 gallon. In the rail market, ethanol under Rule 11 terms for shipment this week was talked 1.5cts higher at $1.59 gallon. May barged fuel ethanol in the New York Harbor was pegged at $1.665 gallon, up 1.0cts on the session.
New York Mercantile Exchange May RBOB futures flipped from trading at a premium to CBOT May ethanol futures to a discount on Wednesday for the first time since Feb. 28, with ethanol futures holding a more than 3.5cts premium to RBOB futures Thursday afternoon.
George Orwel can be reached at firstname.lastname@example.org.
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