Spot ethanol prices in U.S. markets were higher early Thursday afternoon on talk BNSF railway increased freight rates on its CPC-1232 railcars, which typically carry crude.
"I had one of my guys say that BNSF increased his CPC-1232 crude manifest rates by 100%," an ethanol trader told DTN. "They aren't closing themselves to business but they are just way overpricing manifest moves to the point where there is no more money left in the arb."
The higher rail rates follow a June derailment on the BNSF line in Iowa that spilled more than 200,000 gallons of crude oil.
Prompt ethanol at the Argo terminal in Chicago traded at $1.38 gallon, up 1.75cts, while ethanol for this week's rail delivery under Rule 11 terms was bid at $1.35 gallon. In the New York Harbor, spot ethanol was bid at $1.4650 gallon, up 1.25cts.
Brian Whary can be reached at email@example.com.
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