Spot ethanol prices eased again in Chicago and elsewhere under pressure from weaker RBOB and corn futures markets and fears of excess supply in some hubs.
The Chicago market has backed-up supply linked to shipment woes along the Mississippi River, which explains, in part, why the market is trading in contango, where near-term prices are lower than prices for forward delivery months.
February ethanol delivered to the Argo hub near Chicago traded at $1.31 per gallon, while any-January transfer prices were talked at $1.28 to $1.30 per gallon bid/ask. Prompt prices were talked at $1.27 per gallon for a 2.25-cents session loss.
George Orwel can be reached at email@example.com
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