Spot ethanol prices at key U.S. regional trading hubs extended higher Tuesday, with the gains underpinned by supply concerns ahead of the Labor Day holiday weekend. "Supplies are low at Argo," said a trader.
A prompt trade for supply at the Kinder Morgan-operated Argo terminal was done at $2.65 per gallon, up 1.5 cents, while barged ethanol at the New York Harbor was seen at a $2.74 to $2.77 per gallon bid/ask spread, up 3.0 cents.
Ethanol in northern California traded at $2.835 gal, up 2.5 cents. "It's really tight there (at Argo), which is the reason we are seeing (higher prices) in the spot market."
George Orwel can be reached at firstname.lastname@example.org.
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