Spot ethanol prices moved higher in early trade Thursday, rebounding along the U.S. West Coast on short covering amid talk a dearth of rail cars is delaying product deliveries to the region.
"Rail space is tighter in Arizona," said a trade source.
Spot prices were seen at $2.50 gallon in Arizona and northern California, up 4 cents and 2 cents, respectively. Pacific Northwest traded at $2.45 gallon, up 2 cents.
Prices fell Wednesday after federal data showed domestic ethanol inventories rose last week, boosted by higher imports and production by U.S. plants.
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