Spot ethanol prices rose in early choppy trade Friday on strong export demand and short covering prompted by fears bio-refineries are cutting back production as they retool their plants during the fall maintenance season.
"Maintenance season will tighten supply (and) we have strong exports going on but few people are focusing on that," said a trader.
Assessed last at $1.55 per gallon, prompt delivered ethanol at Argo was up a penny for the session, while Chicago ethanol for next week shipment under Rule 11 traded at $1.53 per gallon, up 0.5 cents on the day. New York Harbor prompt ethanol barges was penciled at $1.63 per gallon, while California ethanol was pegged at $1.66 to $1.70 per gallon bid/ask, up 2.0 cents.
George Orwel can be reached at firstname.lastname@example.org.
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