Ethanol transported by rail under Rule 11 terms was seen a tad higher early Tuesday afternoon amid increased buying interest from blenders concerned about short-term supply, while prices for prompt delivered ethanol at the Argo terminal near Chicago and in the New York Harbor were lower.
Concern about supply tightness is driven by the ongoing impact of Hurricane Harvey at the Texas coast. No supply was headed to Houston Tuesday because most of the area's fuel terminals are closed and railroad companies have suspended deliveries to locations around the Texas coast.
However, unaffected blenders in other parts of Texas are still looking for supply, driving demand for ethanol shipments from Chicago under Rule 11 terms.
Ethanol traded under Rule 11 for this week shipment changed hands this morning at $1.5125 per gallon for a gain of 0.25 cents. Houston prompt supply was valued unchanged at $1.595 per gallon, with trade limited by the storm. Prompt ethanol supply at the Argo terminal in the Chicago market traded at $1.53 per gallon, down 2.0 cents on the session.
George Orwel can be reached at email@example.com
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