Ethanol Blog

Spot Ethanol Prices in Argo, NYH Slide on Bearish Supply Data

Spot ethanol prices fell for the third straight day on Wednesday after the Energy Information Administration reported domestic ethanol inventory surged 800,000 bbl or 3.9% to a 21.5 million bbl six-week high during the final week of September. Plant production rose by 14,000 bpd or 1.4% to 1.010 million bpd. Production data was particularly disappointing because we are in the shoulder months, a transition period when producers typically schedule seasonal maintenance at their plants that reduces output, said a source.

In-tank transfer fuel ethanol at the Argo terminal in the Chicago market was valued at a 4-1/2 month low of $1.44 gallon for a loss of 3.0cts on the session. In the rail market, ethanol under Rule 11 terms for this week transport traded at $1.425 gallon, down 4.0cts on the session. On the East Coast, October barged ethanol at the New York Harbor was assessed at $1.52 gallon, down 2.0cts.

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

(CZ)

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