Traders shrugged off data showing ethanol stocks again increased, reaching a one-year high, and instead bid prices up on a rally by Chicago Board of Trade corn futures, with both paper and physical ethanol prices moving higher.
"Corn is what's driving ethanol higher," said a trade source, adding that the 400,000 bbl build in U.S. inventory occurred in the Gulf Coast and was due to delayed exports that would soon be shipped to customers abroad.
The Energy Information Administration said midmorning Wednesday that ethanol stocks reached a 23.1 million bbl one-year high during the week-ended Feb. 24, with the Gulf Coast building 600,000 bbl. Ethanol inventory declined roughly 100,000 bbl in both the Midwest and East Coast.
Prompt transfer ethanol at the Argo terminal in the Chicago market was pegged at $1.51 per gallon for a 1.25-cent gain. March barged ethanol at the New York Harbor was seen at $1.615 per gallon for a 2.5-cent gain. This week shipment of ethanol to northern California was seen at $1.70 per gallon, up 4.0 cents.
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