Both ethanol futures and spot Chicago ethanol in the physical market rallied to one-year highs Thursday, with the price surge driven by sharp gains in corn futures and strong demand for blending. Prompt delivered ethanol at the Argo supply hub traded at $1.6625 and $1.66 per gallon, up 2.0 cents, while June ethanol futures on the Chicago Board of Trade rallied to a $1.682 per gallon one-year high on the spot continuation chart ahead of its expiration Friday afternoon.
The rally coincided with a surge in CBOT July corn futures, which surged to a better than 10-month spot high of $4.194 per bushel, and bullish blending activity. The Energy Information Administration today reported refiner and blender net ethanol inputs increased 6,000 bpd to 922,000 bpd during the week-ended May 27, with the weekly input rate up a sharp 48,000 bpd or 5.5% from year prior.
Brian Milne can be reached at firstname.lastname@example.org.
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