Spot ethanol prices rose in the Chicago and New York Harbor markets on Wednesday after an U.S. Energy Information Administration report showed a decline in U.S. ethanol production of 16,000 barrels per day to 1.04 million bpd.
"The market is up in Chicago and New York because people didn't think production would fall that much," a source said.
Spot ethanol prices also lent support from higher March corn futures on the Chicago Board of Trade, which rallied to a $3.79 bushel, 7-1/2 month high on the spot continuous chart.
Prompt-delivered ethanol at the 1.0 million barrel-capacity Argo terminal traded Wednesday afternoon at $1.5125 and $1.515 gallon, rebounding off earlier trades at $1.50 and $1.495 gallon, and up 1.5 cents on the session. A February barge at the Harbor was pegged at $1.65 gallon, up 2.0 cents, with March barges talked at a $1.61 to $1.64 gallon bid/ask spread, up 0.5 cents.
George Orwel can be reached at firstname.lastname@example.org.
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