Spot ethanol prices traded 6.0cts higher at $1.615 gallon in Houston amid talk of export demand and limited railcar capacity to deliver the product on a prompt basis. One trade source said railcars to the Gulf Coast can't be found, especially in Dallas. The Houston market is served by BNSF Railroad. Separately another industry source said a cargo was being loaded in Houston for shipment to Asia.
The jump in Houston ethanol prices compares with a 0.75cts boost to $1.4750 gallon for prompt ethanol supply at the Argo terminal in Chicago. Ethanol moved by rail under rule 11 terms traded at $1.47 gallon for a 1.0cts gain, with prompt delivered ethanol by barge in the New York Harbor pegged at $1.575 gallon, up 1.5cts.
George Orwel can be reached at firstname.lastname@example.org.
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.