After a nearly 2.0-cent decline on Thursday, spot ethanol prices in Chicago rebounded Friday afternoon as buyers raised bids for prompt delivered supply.
A trade source pointed to short covering by a blender ahead of the weekend break. In-tank transfer ethanol at the Kinder Morgan-operated Argo terminal in the Chicago cash market trading at $1.5825 per gallon and later offered at $1.60 per gallon, up 0.5 cents from end-day Thursday and Friday morning assessments at $1.58 per gallon.
New York Harbor September ethanol barges have also seen a higher offer at $1.69 per gallon, although bids were still low at $1.645 per gallon.
Released Wednesday, the U.S. Energy Information Administration's supply report for the week-ended Sept. 8 showed total ethanol inventory holding steady at 21.1 million bbl, while plant production fell 13,000 bpd, or 1.2% on the week, to 1.047 million bpd. Some plants have cut runs due to seasonal maintenance.
George Orwel can be reached at email@example.com
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