Ethanol Blog

Argo, NYH Spot Ethanol Slips Despite Large Stock Draw

Spot ethanol prices in Chicago and New York Harbor moved lower early Wednesday afternoon in sluggish trade. Markets brushed aside a large 800,000 bbl supply draw reported at midmorning by the Energy Information Administration, which dropped stocks to a 22.0 million bbl four-month low during the week-ended June 2. Supplies along the East Coast declined 500,000 bbl to a nearly five-month low at 7.5 million bbl. U.S. ethanol plant production also declined to a five-week low -- down 21,000 bpd to 999,000 bpd.

Spot ethanol moved higher in early trade on a rally by Chicago Board of Trade July corn futures, which surged to a one-year high on the spot continuous chart at $3.87 bushel on concern over the effect hot weather in the western Plains would have on the corn crop.

On the bearish side, blending demand for ethanol dropped 41,000 bpd to a two-month low at 909,000 bpd and implied gasoline demand plunged 505,000 bpd. July RBOB futures on the New York Mercantile Exchange tumbled more than 6.0cts to a $1.4878 gallon one-month spot low before trimming the decline.

CBOT July ethanol futures were fractionally higher at $1.566 gallon.

Spot value for Chicago at the Argo terminal was down 0.5cts at $1.53 gallon, with Rule 11 rail transport 1.0cts lower at $1.52 gallon. New York Harbor spot ethanol dropped 1.25cts to $1.6075 gallon.

Dawn Gallagher can be reached at dawn.gallagher@dtn.com.

(CZ)

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