Spot ethanol prices at key hubs in the United States fell to seven-month lows Wednesday after the Energy Information Administration reported the fourth consecutive weekly supply increase, up 300,000 bbl to 23.259 million bbl during the week-ended Aug. 17, a five-month high and 8.4% or 1.8 million bbl above the year ago stock level.
"There's just not a whole lot going on so basically we're in the same boat as we were last week when supplies rose," one ethanol trader told DTN. "There's really very little news out there aside from the bearish EIA ethanol numbers to drive the markets."
In physical trade, spot ethanol cash values in Chicago, New York Harbor, Houston and the Pacific Northwest all dropped to seven-month lows. In the Chicago market at the Argo hub, spot ethanol traded more than 0.5cts lower at $1.34 gallon, with Rule 11 rail deliveries down 1.5cts with a trade at $1.33 gallon. New York Harbor spot ethanol traded at $1.44 gallon, and then eased to a $1.43 by $1.44 bid/ask spread, down 1.25cts. In Houston, spot ethanol traded down 1.5cts at $1.44 gallon.
Brian Whary can be reached at firstname.lastname@example.org.
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