A sharp drop in Chicago Board of Trade corn futures drove spot ethanol prices in Chicago and New York Harbor 0.75 cents lower in early trade Monday.
"Corn is coming off hard because of rains in South America and the U.S. wheat market is also weak, so I'd say ethanol is following corn, with paper down about 2 cents," said a trader.
In physical trade, prompt delivered ethanol at Argo in the Chicago market was pegged at $1.45 per gallon while ethanol railed under Rule 11 terms for this week shipment traded at $1.455 per gallon for a 0.5-cent loss. NYH March delivered ethanol barge was assessed at $1.57 per gallon.
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