Spot ethanol prices spiraled lower in early trade Tuesday on talk of excess supply especially at one of the two ethanol terminals in the Chicago market.
"There's a lot of product at Argo due to logistical problems," a trade source said.
Trade sources said storage at the Kinder Morgan-operated Argo terminal was so full that the midstream operator was starting to divert incoming truck deliveries to the nearby Stony Island terminal, which Kinder Morgan also operates.
Prompt-delivered product at Argo traded at $1.52, $1.51, $1.50 and $1.4975 gallon for a loss of 6.75 cents.
In the rail market, product for prompt shipment traded was assessed at $1.50 gallon, down 5.5 cents on the session. A February barge at the New York Harbor traded at $1.60 gallon, down 4.0 cents on the session.
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