U.S. spot ethanol prices tumbled in early trade Tuesday, pressured by easing supply constraints and talk of lower demand amid snowstorms in the heavy population centers of the Northeast and Mid-Atlantic.
"Supply is ok ... You don't have shortages, and especially at Argo," said a trader. "Driving can be affected, which might add some more pressure." Today transfer ethanol at Argo was talked early at a $1.96 to $1.99 per gallon bid/ask spread, down 9.5 cents on the day.
January New York Harbor ethanol barge wasn't traded but was pegged at a $2.30 to $2.34 per gallon bid/ask spread, down 6.0 cents on the day, with February product talked at a $2.28 to $2.34 per gallon bid/ask. Prompt northern California ethanol was talked at a $2.22 to $2.28 per gallon bid/ask spread, down 22.5 cents.
George Orwel can be reached at email@example.com
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