Ethanol Blog

Spot Ethanol Prices Climb on Stock Draw, Demand Pickup

Spot ethanol prices posted gains Wednesday afternoon on data released midmorning by the Energy Information Administration showing domestic ethanol supply was drawn down sharply from a record high last week while implied demand surged. EIA reported an 800,000 bpd or 3.4% inventory drop to 23.0 million bbl during the week ended Jan. 26, the first draw after four straight weekly stock builds. Net refiner and blender inputs, a measure for ethanol demand, climbed 32,000 bpd or 3.9% to 858,000 bpd while up 21,000 bpd or 2.5% versus a year ago.

The bullish data brought many traders back to the market, said a trade source, with prompt delivered ethanol at the Argo terminal in Chicago trading nearly 20 times from $1.3675 to $1.3775 gallon for a gain of 1.0cts. This week transported ethanol by rail under Rule 11 terms traded at $1.38 gallon, up 2.25cts, while prompt delivered ethanol by barge in the New York Harbor was valued at $1.50 gallon for a 1.5cts gain.

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

(CZ)

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