Midwest spot ethanol prices were boosted by a U.S. Department of Agriculture report that cut corn supply estimates while raising demand for corn by ethanol producers, prompting a rally for the Chicago Mercantile Exchange corn futures.
The report raised corn used to produce ethanol by 50 million bushels, showing continued strong ethanol production and a higher forecast for 2014 gasoline consumption.
Prompt transfer ethanol at the Argo terminal near Chicago traded at $2.20 per gallon after being talked this morning at a $2.12 to $2.16 per gallon bid/ask. Chicago ethanol traded under Rule 11, which is for shipments to the Gulf and East coasts, was offered at $2.62 per gallon, up 7.0 cents. Prompt ethanol in Wisconsin was seen at $2.60 per gallon, higher than any Midwest spot price seen in a while.
George Orwel can be reached at email@example.com
© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.