Spot ethanol prices fell sharply at the Kinder Morgan-operated Argo terminal despite federal data showing domestic supplies fell to a two-month low last week. Argo prices rallied Wednesday on a short squeeze in the Chicago area, which has since eased. Argo spot prices for today transfer traded as much as $3.05 per gallon late Wednesday, but eased this morning to $2.81 to $2.87 gallon bid/ask spread.
However, the paper market firmed with Chicago Mercantile Exchange September ethanol futures up 8.7 cents at $2.57 gallon after the Energy Information Administration said U.S. inventories were drawn down 50,000 bbl to 16.2 million bbl in the week-ended Aug. 30 on the back of lower domestic production.
George Orwel can be reached at email@example.com
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