Ethanol Blog

Spot Ethanol Prices Sink as Supply Concerns Ease

By George Orwel , DTN Energy Reporter

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 george.orwel@telventdtn.com

(ES)

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