The West Coast spot ethanol market has been quiet this week with few trades transacted, as buyers have stepped to the sidelines waiting for prices to decline, a trade source said.
The source said sellers of West Coast ethanol were asking for $2.75 per gallon for May delivery, 30 cents a gallon above May ethanol futures on the Chicago Board of Trade, arguing that supply remains tight. However, buyers don't agree, saying prices should come off more, partly because Midwest logistics have improved with warming weather, so supplies should increase by next week.
May spot ethanol in the West Coast was offered at $2.75 per gallon, but buyers said they'd rather buy June cargoes at 20 cents over futures or $2.65 gallon.
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