U.S. spot ethanol prices eased in New York in early trade Wednesday, as a rebound in weekly U.S. ethanol production offset rising demand and a drop in total inventories.
New York Harbor May-delivered ethanol was talked at $2.76 gallon, reflecting a 10 cents premium to prompt Argo ethanol prices. That spread has been trading at a 15 cents-to-20 cents N.Y. premium since last week as tight supply along the East Coast pushed up prices at the Harbor.
Today's narrowing transportation differential reflects a return to a normal spread, said an analyst.
George Orwel can be reached at email@example.com.
© Copyright 2013 DTN/The Progressive Farmer. All rights reserved.