Spot ethanol prices edged higher in Chicago Monday amid strong short-term demand and tight regional supply in limited trade volume.
Cash values at the Argo terminal in the Chicago market are discussed at premiums to spot prices in the New York Harbor, Houston and California markets. Trade sources said the Argo premium reflects the supply shortage still being felt in the Chicago market.
Prompt delivered ethanol at Argo was talked at a $1.80 to $1.84 per gallon bid/ask spread, up 0.5 cent on the day. In the rail market, prompt supply traded under Rule 11 was offered at $1.79 per gallon, up 2.0 cents. December barges at the New York Harbor were valued at $1.73 per gallon for a 1.0-cens loss while this week product shipment to California was bid at $1.80 per gallon for a 2.0-cent decline on the session.
George Orwel can be reached at email@example.com
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.