Ethanol Blog

Argo, NYH Spot Ethanol Prices Up on Hedging, Demand Talk

Spot ethanol prices traded higher again on Friday amid pre-weekend short covering, hedging trade on the prospect of more exports to Asia and on reports an E15 bill is headed to a markup at the U.S. Senate Environment and Public Works Committee. If successful, the legislation could boost demand for ethanol.

Trade sources said prompt fuel ethanol supply at the Argo hub in the Chicago market was talked at a $1.47 to $1.48 per gallon bid/ask spread, up 2.5 cents on the day, and any May delivered ethanol supply was seen at a $1.46 to $1.475 per gallon bid/ask. June swaps were talked at a $1.51 to $1.52 per gallon bid/ask, up 3.0 cents.

In the rail market, ethanol under Rule 11 terms for shipment this week was discussed 2.0 cents higher at $1.44 and $1.45 per gallon. May fuel ethanol barges at the New York Harbor were valued at $1.515 per gallon, and then at $1.52 per gallon, up 2.0 cents.

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

(ES)

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