Argo Ethanol Ends off 1Yr Low after Corn Futures Spike 3.5
1/17 4:48 PM
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.