Ethanol Blog

Spot Ethanol Prices Gain on Higher Demand, USDA Data Eyed

Spot ethanol prices rose again early Wednesday on talk of strong export demand, increased speculative activity and expectations that Thursday's U.S. Department of Agriculture report will show a lower corn supply estimate than previously thought.

In addition, a report from the U.S. Energy Information Administration issued midmorning Wednesday showed blending activity surged to a six-week high of 875,000 bpd during the week-ended Feb. 3, which coincided with a 630,000 bpd surge in implied gasoline demand to 8.941 million bpd -- the highest demand rate since the week before Christmas.

In cash trade, prompt delivered product at Argo terminal in the Chicago market was talked at $1.56 to $1.59 per gallon for gain of 2.5 cents. Product for prompt shipment traded under Rule 11 was talked at a $1.55 to $1.58 per gallon bid/ask, up 3.5 cents. A February barge at the New York Harbor traded at $1.645 per gallon for a 2.5-cent gain on the session.

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

(ES)

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