Spot ethanol prices at the Kinder Morgan operated Argo terminal situated east of Chicago and at the New York Harbor moved lower in discussion Friday afternoon in limited trade ahead of the three-day weekend.
Trade sources pegged New York Harbor prompt ethanol barges at $1.57 per gallon, down 2.5 cents from the prior session, with prompt delivered ethanol at Argo 2.0 cents lower at $1.4450 per gallon. January any Argo traded at $1.4450 gallon. In the rail market, ethanol traded under Rule 11 for shipping to coastal markets was assessed at $1.4450 gallon, unchanged.
Ethanol values are under pressure from bearish fundamentals, with domestic ethanol stockpiles building 1.3 million bbl to a 20.0 million bbl three-month high during the first week of 2017, the Energy Information Administration reported Wednesday.
EIA reported a 500,000 bbl build along the East Coast PADD 1 to a 6.7 million bbl 11-week high, while PADD 2 Midwest supply rose for a third straight week, up 600,000 bbl to a 7.4 million bbl 9 1/2-month high. The supply builds coincided with a fresh record high in production to 1.049 million bpd, while blending demand declined 39,000 bpd to an 806,000 bpd one-year low.
Dawn Gallagher, 1.732.531.4451, email@example.com
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