Spot ethanol prices moved lower early Wednesday afternoon following the midmorning release of weekly supply data from the Energy Information Administration. The report showed a 1.3 million bbl gain in domestic supply, to a 20.0 million bbl three-month high, during the first week of 2017 as domestic production rose to a record high 1.049 million bpd.
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EIA also reported a 39,000 bpd decline in blending demand, with refiner and blender net inputs of ethanol sliding to an 806,000 bpd one-year low.
Supply builds were large along the East Coast PADD 1, where stocks increased 500,000 bbl, to an 11-week high at 6.7 million bbl. PADD 2 Midwest had a 600,000 bbl jump, to 7.4 million bbl, a third straight weekly build and a 9 1/2-month high.
Prompt ethanol barges at the New York Harbor eased 0.50 cent to $1.60 per gallon, while February delivery barges were pegged at $1.595 gallon.
Prompt delivered ethanol at the Argo terminal in Chicago was indexed at $1.445 to $1.475 per gallon, down 2.5 cents. In the rail market, ethanol traded under Rule 11 for shipping to coastal markets was bid at $1.44 gallon versus bids a day ago at $1.47 per gallon.
Dawn Gallagher can be reached at firstname.lastname@example.org
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