U.S. spot ethanol prices were mostly higher early Wednesday afternoon after the Energy Information Administration reported domestic ethanol plant production slipped 28,000 barrels per day (bpd) to 1.072 million bpd.
"The market was expecting a bigger production increase," one ethanol trader told DTN. "While production is still high, it was expected to be higher and spot markets have been tracking higher since the EIA report came out."
Traders expected a production increase to 1.085 million bpd during the week ended Aug. 10. Plant production averaged 1.077 million bpd during the four weeks ended Aug. 10, EIA data shows, with output up 56,000 bpd, or 5.5%, above the comparable year-ago period.
In physical trade, prompt delivered ethanol at the Kinder-Morgan-operated Argo terminal in Chicago traded early at $1.3550 gallon and post-EIA data at $1.3650 gallon, up 0.75 cent. Ethanol for this week rail delivery under Rule 11 terms traded at $1.36 gallon, unchanged on the day. In the New York Harbor, spot ethanol traded 0.5 cent higher at $1.4550 gallon, with its premium to Chicago at a 9.0-cent 5-1/2-month low.
Brian Whary can be reached at email@example.com
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