Spot ethanol prices in Chicago and the New York Harbor advanced on Wednesday following stepped-up buying activity after data from the Energy Information Administration showed domestic fuel ethanol supply declined 500,000 bbl or 2.1% from a record high during the week ended March 16 to 23.8 million bbl. Midwest supply was drawn down 200,000 bbl or 2.2% last week from a record high to 9.0 million. Prompt delivered supply at the Argo hub in the Chicago market traded five times during the aftermarket at $1.45 and $1.4525 gallon, up 2.25cts, with Harbor barges at $1.56 gallon, up 0.5cts.
Also, the renewable credits market rallied as "people are thinking there won't be any major changes in the Renewable Fuel Standard and they are now re-evaluating RIN values... there was pent up buying," said a trade source. 2018 D6 renewable identification numbers traded at 44.0cts, 45.0cts and 46.0cts, up 7.5cts on the day, while D4 biodiesel RINs traded at 77.0cts, up 2.0cts.
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