Spot ethanol prices fell for the third straight day on Wednesday after the Energy Information Administration reported domestic ethanol inventory surged 800,000 bbl or 3.9% to a 21.5 million bbl six-week high during the final week of September. Plant production rose by 14,000 bpd or 1.4% to 1.010 million bpd. Production data was particularly disappointing because we are in the shoulder months, a transition period when producers typically schedule seasonal maintenance at their plants that reduces output, said a source.
In-tank transfer fuel ethanol at the Argo terminal in the Chicago market was valued at a 4-1/2 month low of $1.44 gallon for a loss of 3.0cts on the session. In the rail market, ethanol under Rule 11 terms for this week transport traded at $1.425 gallon, down 4.0cts on the session. On the East Coast, October barged ethanol at the New York Harbor was assessed at $1.52 gallon, down 2.0cts.
George Orwel can be reached at firstname.lastname@example.org.
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