Cash ethanol prices traded lower in Chicago and Arizona despite bullish data from the Energy Information Administration showing a stock draw and higher demand for ethanol. Instead, ethanol values came under pressure from a retreat for corn and gasoline futures. "The front-end of the ethanol [forward] curve came under pressure from falling corn prices," said a trader. "The back-end spread is 0.5-cent premium for the fourth-quarter. Plants are still running strong, so it's going to be tough to get ethanol prices back up." Prompt transfer ethanol at Argo traded early at $1.50 gallon before discussions at a $1.50 to $1.515 gallon bid/ask, down 1.25 cents on the session. Prompt shipment to Arizona traded at $1.645 gallon before being discussed in a $1.65 to $1.66 gallon bid/ask spread, down 2.0 cents.
George Orwel can be reached at firstname.lastname@example.org
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