U.S. spot ethanol prices moved lower early afternoon Wednesday under pressure from a broad-based decline in commodity futures contracts. Also contributing pressure was weekly data from the Energy Information Administration, which showed the first increase in domestic ethanol inventory in three weeks, up 314,000 bbl to 21.967 million bbl during the week ended July 27. U.S. ethanol stocks are 1.1 million bbl or 5.3% above the comparable year-ago period. U.S. plant production did decline 10,000 bpd to 1.064 million bpd on the week, albeit from a 2018 high while 62,000 bpd or 6.2% above year ago.
Prompt ethanol at the Kinder-Morgan operated Argo terminal in Chicago was off 1.25cts at $1.45 gallon, while ethanol for this week's rail delivery under Rule 11 terms was unchanged at $1.4563. In the New York Harbor, traders reported spot trades at $1.57 gallon, 0.50cts less on the day. On the Gulf Coast, spot supply traded at $1.5650 gallon, down 1.0cts. In the California markets, spot price eased 0.5cts to $1.75 gallon for this week's deliveries.
Brian Whary can be reached at email@example.com.
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