Spot ethanol at the Kinder-Morgan operated Argo terminal in Chicago traded down 0.5cts to a $1.3425 gallon nearly eight-month low, pressured, in part, by a third down day for Chicago Board of Trade September corn futures, which settled 2.2cts lower at $3.59 bushel, edging off a $3.584 one-week low. In the New York Harbor, spot ethanol traded up 0.5cts at $1.45 gallon, moving to a nearly 10.5cts gallon nine-session high premium against Chicago. The spread between the two market hubs had narrowed to a 5-1/2 month low 9.0cts gallon Harbor premium a week ago.
Mixed trade at the two hubs comes ahead of ethanol supply data for the week ended Aug. 17, expected for release 10:30 a.m. EDT Wednesday from the Energy Information Administration that follows the previous week's report showing inventory gained for a third week to 23.0 million bbl, 1.2 million bbl above year ago. EIA reported a 28,000 bpd decline in U.S. ethanol plant production to a still high 1.072 million bpd for the week ended Aug. 10, which compares with a 948,000 bpd blend rate.
Brian Whary can be reached at firstname.lastname@example.org.
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.