Spot ethanol prices in Chicago moved lower early afternoon amid thin trading volume as favorable growing conditions and an escalating trade dispute with China continue to pressure Chicago Board of Trade corn futures, which dropped to a $3.314 per bushel 7-1/2-month low on a spot continuous basis, with the July contract set to expire Friday afternoon.
"Ethanol is getting smashed in the paper markets with the lower corn futures," one ethanol trader told DTN MarketWire. "We're seeing sub-$1.40 gallon paper for August delivery for the first time in 16 days."
CBOT ethanol futures with August delivery was 2.8 cents lower at $1.397 gallon, trading near a three-week low of $1.391 gallon.
Prompt ethanol at the Kinder Morgan-operated Argo terminal in Chicago traded at $1.4050, down from trades Tuesday of $1.41 and $1.4125 gallon. Ethanol for this week's shipment under Rule 11 rail terms was unchanged at $1.4775 gallon. In the Houston market, spot ethanol traded at $1.5650 gallon, down 1.0 cent.
Brian Whary can be reached at email@example.com
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.