Chicago Spot Ethanol Prices Gain in Limited Trade Thursday
10/12 4:24 PM
Chicago Spot Ethanol Prices Gain in Limited Trade Thursday OAKHURST, N.J. (DTN) -- Spot ethanol prices at the Argo trade hub in Chicago moved higher Thursday in limited trade with values along the coasts ending a thin trade session flat while corn futures on the Chicago Board of Trade rallied and New York Mercantile Exchange RBOB futures dropped. "We had a bullish [ethanol] production number and corn started rallying immediately after the WASDE report came out," explained a trade source. The U.S. Department of Agriculture at midday released its latest World Agricultural Supply and Demand Estimate detailing lower than expected U.S. ending corn stocks, although yield and production increased. December CBOT corn futures settled up 3.0cts to $3.49 bushel. NYMEX November RBOB futures dropped 2.6cts to a $1.5832 gallon settlement, ending lower after the Energy Information Administration showed a surprise 2.5 million bbl increase in domestic gasoline supplies during the week-ended Oct. 6. EIA also reported U.S. ethanol inventories held at 21.5 million bbl last week while plant production fell 43,000 bpd or 4.3% to 967,000 bpd and blending demand rose 7,000 bpd to 937,000 bpd. The CBOT November ethanol contract was marginally higher, settling up 0.7cts at $1.43 gallon. In physical trade, prompt supply fuel ethanol at the Argo traded from $1.43 up to $1.4375 gallon, up 0.75cts. In the rail shipment market, ethanol under Rule 11 terms for this week transport was pegged at $1.4150 gallon, up 1.75cts. On the East Coast, October barged ethanol at the New York Harbor traded at $1.47 and $1.48 gallon. Last pegged at $1.48 gallon, spot price held steady on the session. Sources said barged ethanol in Houston traded at $1.49 gallon, unchanged, while in northern California this week shipment ethanol traded at $1.55 gallon, also flat on the day. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) 2017 DTN. All rights reserved.