Spot ethanol prices edged higher Wednesday after the Energy Information Administration reported U.S. ethanol production and inventories continued lower last week as expected, while implied demand increased.
The data showed total inventories dropped 500,000 bbl or 2.3% to 21.4 million bbl during the week-ended Jan. 22 while output fell 22,000 bpd to 961,000 bpd.
Blender inputs, a proxy for ethanol demand, surged 9,000 bbl or 1.0% to 865,000 bpd for the week.
Today ethanol at the Argo hub traded at $1.40 per gallon, up 0.5 cent. Chicago ethanol traded under Rule 11 was offered up 2.0 cents at $1.415 per gallon, and spot Nebraska ethanol traded at $1.26 per gallon. Prompt ethanol in Arizona traded early at $1.52 and $1.525 per gallon, up 3.5 cents.
George Orwel can be reached at firstname.lastname@example.org.
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