Ethanol Blog

U.S. spot ethanol prices rose in early afternoon trade Friday amid a tightening supply-demand disposition at key trading hubs across the nation, with most buyers looking in vain for prompt delivered product.

A lack of weekly supply data from the Energy Information Administration also limited activity, with some traders said to be cautious about committing to trades, said one trader.

"There's a short squeeze at Argo again because the New York Harbor is pulling lots of available product and nobody's sending to Argo," said the trader. "November retables are being bought up." Prompt ethanol at the Argo hub near Chicago was talked wide in a $2.08 to $2.12 per gallon bid/ask spread, up 4.0 cents on the day.

George Orwel can be reached at george.orwel@telventdtn.com.

(ES/)

© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.