Ethanol Blog

Spot Chicago Ethanol Prices Gain on the Carry Trade

Spot ethanol prices advanced for the fifth straight day in early afternoon trade Tuesday, rallying on increased short-term buying interest and strong export demand. "People are filling up their inventory," said a trade source. "The carry market is strong."

Spot ethanol prices are climbing despite seasonal demand weakness, building supply last measured at a nine-month high and record domestic production. Trade sources expect plant output to ease later in the quarter when producers shut units for seasonal maintenance.

Prompt delivered product at the Argo terminal in the Chicago market traded at $1.525 and $1.535 per gallon for a gain of 3.0 cents. March delivered product at Argo traded at $1.545 per gallon in the contango market. Product for prompt shipment traded under Rule 11 was talked at a $1.52 to $1.54 per gallon bid/ask, up 5.0 cents on the session. February barges at the New York Harbor traded at $1.60 and $1.62 per gallon, up 5.0 cents.

George Orwel can be reached at george.orwel@dtn.com

(ES)

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