Argo Ethanol Ends off 1Yr Low after Corn Futures Spike 3.5%

    

   Washington, D.C. (DTN) --- Except for the product at Argo terminal in 
Chicago, spot ethanol across major U.S. trading hubs moved lower on Friday, 
while also posting across-the-board weekly declines pressured by building 
domestic inventories and record high production. 

   Chicago Board of Trade March corn futures reversed sharply higher to settle 
at $3.890 a bushel on Friday, helped by signs of increased demand for grain 
exports. Also, winter storms in the central Midwest are making travel difficult 
and will impair grain movement through the weekend. 

   "Traders are showing some anxiety since the phase-one trade agreement was 
signed Wednesday, still anticipating increased purchases from China in 2020 on 
one hand, but not knowing for sure what amount to expect. Technically, the 
trend in corn remains sideways and, in spite of this week's volatility, winter 
is typically a quieter season for trading," said DTN Lead Analyst Todd Hultman. 

   Mid-week inventory data showed nationwide ethanol stocks built by 544,000 
bbl to 23.006 million bbl, a fresh 15-week high, while domestic production 
extended higher by 33,000 bpd to 1.095 million bpd, nearing an all-time record 
high 1.108 million bpd reached during the first week of December 2017.

   On the week, ethanol spot prices at Argo fell 0.50cts to $1.2600 gallon, 
while gaining 2.50cts on Friday. 

   New York Harbor ethanol was last indexed 2cts lower at $1.3600 gallon and 
down alike amount from last Friday (1/10). Houston ethanol was last discussed 
down 5.50cts at $1.3700 gallon, 2.50cts lower on the week. California product 
was pegged at $1.500 gallon, down 2cts from the session prior, while shedding 
4cts from last Friday. 


Spot Ethanol Prices
Market                  Low          High         Last         vs 1/16       vs 1/10
New York Harbor         $1.3500      $1.3700      $1.3600      -$0.0200      -$0.0200
Chicago (Terminal)      $1.2500      $1.2700      $1.2600      $0.0250       -$0.0050
Chicago (Rule 11)       $1.3100      $1.3200      $1.3150      $0.0200       $0.0100
Houston                 $1.3700      $1.3800      $1.3750      -$0.0550      -$0.0250
Northern Calif.         $1.4900      $1.5100      $1.5000      -$0.0200      -$0.0400
Southern Calif.         $1.4900      $1.5100      $1.5000      -$0.0200      -$0.0400
Phoenix                 $1.3800      $1.4100      $1.3950      -$0.0150      -$0.0025
Pacific Northwest       $1.4800      $1.5000      $1.4900      -$0.0200      -$0.0300

   Liubov George, 1.646.359.4088, luibov.georges@dtn.com, www.dtn.com. (c) 2020 
DTN. All rights reserved.