Spot ethanol prices extended lower in dull early trade Wednesday at key regional hubs as profit taking and pressure from lower corn futures on the Chicago Mercantile Exchange offset expectation that ethanol stocks in the United States may have again been drawn down last week.
"Profit taking makes the markets go around," said analyst Dan Flynn at Price Futures in Chicago. "It seems we are in the middle of a momentum change with the ... selling off recent gains as well." This week transfer is talked in a $2.66 to $2.68 gallon bid/ask spread at both the Argo hub near Chicago and at Linden in the New York Harbor, reflecting a 5-cents session loss. Prompt ethanol in California traded at $2.74 gallon, down 4 cents.
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