Spot ethanol prices traded higher in Chicago and the New York Harbor Friday on short-covering triggered by talk of an outage at a Midwest biorefinery that reduced physical supply while export demand is reportedly strong, sources said.
Prompt ethanol supply at the Argo hub in the Chicago cash market traded at $1.69 per gallon, up 1.25 cents. Chicago ethanol supply traded under Rule 11 for prompt shipment was also valued at $1.69 per gallon, up 1.75 cents. The parity valuation for terminal and rail markets in Chicago illustrates a tight supply market. November ethanol barges at the New York Harbor were talked at a $1.79 to $1.80 per gallon bid/ask, up 3.5 cents.
George Orwel can be reached at firstname.lastname@example.org.
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.