Ethanol Blog

Spot Ethanol Prices Retreat After Bearish EIA Data

Spot ethanol prices retreated in early trade Wednesday after a bearish weekly inventory report from the U.S. Energy Information Administration prompted profit-taking in the cash and paper markets, but trade sources said they expect the market to recover because exports remain strong, deliveries are getting delayed due to train problems and stocks at some key hubs are drawn down. Prompt transfer ethanol at the Argo supply hub near Chicago traded before the EIA data at $1.615 gallon which was within Tuesday's trades, a source said. After the EIA issued its data, prompt delivered Argo ethanol traded at $1.59 gallon and was last seen at $1.585 gallon, down 3.5cts on the day.

George Orwel can be reached at george.orwel@telventdtn.com.

(CZ)

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