Ethanol Blog

U.S. spot ethanol prices moved lower early afternoon Thursday under pressure a second day following bearish supply data from the Energy information Administration. The report released Wednesday showed domestic ethanol inventories increased for the first time in three weeks, and there was also high plant production.

EIA reported a 314,000 bbl build in ethanol stocks for the week ended July 27, to 21.967 million bbl, which is 1.1 million bbl or 5.3% above the year-ago inventory level. EIA did report a 10,000-bpd decline, to 1.064 million bpd, in domestic plant production for the week, although from a 2018 high output rate, with production 62,000 bpd or 6.2% above the year-ago rate.

In early afternoon trade Thursday, prompt ethanol at the Kinder-Morgan operated Argo terminal in Chicago traded at $1.4350 per gallon, down 1.38 cents, while ethanol for this week's rail delivery under Rule 11 terms was discussed 0.50 cents lower in a $1.44-to-$1.45 per gallon bid/ask spread.

In the New York Harbor, spot price declined 2.25 cents per gallon with trades at $1.5425, while down 2.5 cents in Houston at $1.54 per gallon. In California, spot ethanol dropped 3.0 cents to $1.7450 per gallon.

Brian Whary can be reached at brian.whary@dtn.com

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