Argo Spot Ethanol Prices End Dull Trade Session Unchanged
4/25 4:25 PM
Argo Spot Ethanol Prices End Dull Trade Session Unchanged OAKHURST, N.J. (DTN) --- Spot ethanol prices at the Kinder Morgan-operated Argo terminal in Chicago held steady Wednesday afternoon following a lackluster trade session, sources said. The Energy Information Administration reported a surprise build in domestic ethanol supplies last week, the first in six weeks despite continued decline in production. Overall ethanol inventories rose 357,000 bbl to 21.701 million bbl during the week-ended April 20, though production fell for a fifth week, down 24,000 bpd to 985,000 bpd, the lowest level since early October. Last week marked only the second time this year ethanol production fell below 1.0 million bpd, with the first time reported for the week-ended Jan. 5 at 996,000 bpd. Net refiner and blend inputs, a measure for ethanol demand, fell 6,000 bpd on the week to 911,000 bpd. Data showed Midwest PADD 2 ethanol inventories drawn down a sixth straight week, down 65,000 bbl to 7.843 million bbl, the lowest level since late December. PADD 2 ethanol output fell 32,000 bpd to 893,000 bpd during the week-ended April 20, a second straight weekly decline and the lowest level since early October. EIA reported Midwest net refiner and blender inputs, a measure for ethanol demand, decreased 2,000 bpd on the week to 334,000 bpd. PADD 2 motor gasoline production fell 33,000 bpd on the week to 2.518 million bpd. The data showed total motor gasoline supplies increased 840,016 bbl while overall gasoline production dropped 318,000 bpd last week and implied demand sank 774,000 bpd. In physical trade, sources pegged any-month delivered ethanol at the Argo terminal traded late day at $1.4725 gallon, steady on the session. Ethanol for this week shipment under Rule 11 rail terms was talked at $1.48 gallon, down 1.75cts. Sources pegged next week shipped ethanol at $1.49 gallon. In New York, May barged ethanol was pegged 0.50cts higher at $1.5750 gallon while barged ethanol at the Gulf Coast was pegged a penny lower at $1.56 gallon. Trade sources pegged prompt railed West Coast ethanol at $1.78 gallon, up 3.0cts from the prior session. In futures trade, New York Mercantile Exchange May RBOB futures recouped much of the session's decline, settling down 0.52cts at $2.0897 gallon after trading as low as $2.0694 gallon. The Chicago Board of Trade ethanol contract settled marginally higher at $1.472 gallon while front month CBOT futures jumped 5.2cts to $3.864 bushel amid a surge in wheat futures and dry weather concerns in Brazil. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2018 DTN. All rights reserved.