Spot ethanol prices in Chicago and New York Harbor moved lower early Wednesday afternoon in sluggish trade. Markets brushed aside a large 800,000 bbl supply draw reported at midmorning by the Energy Information Administration, which dropped stocks to a 22.0 million bbl four-month low during the week-ended June 2. Supplies along the East Coast declined 500,000 bbl to a nearly five-month low at 7.5 million bbl. U.S. ethanol plant production also declined to a five-week low -- down 21,000 bpd to 999,000 bpd.
Spot ethanol moved higher in early trade on a rally by Chicago Board of Trade July corn futures, which surged to a one-year high on the spot continuous chart at $3.87 bushel on concern over the effect hot weather in the western Plains would have on the corn crop.
On the bearish side, blending demand for ethanol dropped 41,000 bpd to a two-month low at 909,000 bpd and implied gasoline demand plunged 505,000 bpd. July RBOB futures on the New York Mercantile Exchange tumbled more than 6.0cts to a $1.4878 gallon one-month spot low before trimming the decline.
CBOT July ethanol futures were fractionally higher at $1.566 gallon.
Spot value for Chicago at the Argo terminal was down 0.5cts at $1.53 gallon, with Rule 11 rail transport 1.0cts lower at $1.52 gallon. New York Harbor spot ethanol dropped 1.25cts to $1.6075 gallon.
Dawn Gallagher can be reached at firstname.lastname@example.org.
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