Spot ethanol prices traded sharply higher Thursday on a strong rally for Chicago Board of Trade corn futures in reaction to U.S. Department of Agriculture statistics showing a large drop in planted corn acreage. The USDA report was preceded by data from the Energy Information Administration released Wednesday showing a steep drop in domestic ethanol supplies during the week ended March 23.
Prompt delivered supply at Argo hub in the Chicago market traded three times during the aftermarket at $1.4625 gallon, up 2.75cts, with New York Harbor barges trading twice at $1.58 and $1.59 gallon for a 6.0cts gain. The price spread between Chicago and Harbor expanded from 9.0cts to 13.0cts. California spot prices were pegged 3.5cts higher at $1.655 gallon while Houston values were seen at $1.59 gallon for a 4.5cts gain.
George Orwel can be reached at email@example.com.
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