Spot ethanol prices traded lower in Chicago on expectation bio-refiners in the United States kept a steady pace of high production last week while demand is a little weak.
"The market is well-supplied, so it's not surprising that the front-end [of the forward curve] is cheaper," said a source.
Today transfer ethanol at Kinder Morgan-operated Argo terminal traded at $1.35 per gallon and tomorrow transfer traded at $1.355 per gallon, down 3.75 cents on the session. Any March Argo ethanol was pegged at $1.375 per gallon while Chicago ethanol traded on the basis of Rule 11 for this week shipment traded at $1.3475 per gallon. Chicago swaps for April traded at $1.395 per gallon.
George Orwel can be reached at email@example.com.
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