Ethanol Blog

Ethanol Spot Prices Slump on Bearish Weekly Data

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.

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 dawn.gallagher@dtn.com

(ES)

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