Spot ethanol prices plunged in Chicago this morning amid talk of short-selling by a major trading house, with an ethanol producing company also selling because of a lack of storage space. Spot values were also under pressure from a retreat by corn and RBOB futures.
In the physical market, prompt delivered ethanol at the Argo terminal in the Chicago market was pegged last at $1.22 gallon for a loss of 5.0 cents. Swaps for December were seen at a $1.27 to $1.28 gallon bid/ask spread. In the rail transportation market, ethanol trading under Rule 11 terms was seen at a $1.20 to $1.24 gallon bid/ask spread, down 3.5 cents.
George Orwel can be reached at email@example.com
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