Ethanol Blog

Chicago, NYH Spot Ethanol Prices Slump in Quiet Trade

Spot ethanol markets were quiet early Thursday afternoon following Wednesday's reported supply build for the week ended June 9 and the selloff in the gasoline market, with New York Mercantile Exchange RBOB futures slumping to its lowest settlement value on the spot continuation chart in 2017 midweek.

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NYMEX July RBOB futures traded at a fresh 6-1/2-month spot low Thursday at $1.4101 gallon, under pressure from building gasoline supply and a drop in demand in early June, according to data from the Energy Information Administration.

EIA also reported a 500,000 barrel (bbl) build in U.S. ethanol stocks for last week, with roughly 300,000 bbl of that build occurring along the heavily populated East Coast. At 7.8 million bbl on June 9, East Coast ethanol supply is 400,000 bbl above the comparable year-ago period.

Trade sources pegged June ethanol barges in New York Harbor at $1.555 gallon, down a steep 3.25 cents. In the Chicago market, prompt ethanol at the Argo hub was bid at $1.51 gallon while anys were bid at $1.535 gallon. In the rail market, ethanol under Rule 11 terms for this week shipment traded at $1.51 gallon, down 1.5 cents.

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

(ES)

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