Spot ethanol prices moved higher in Chicago Monday as a short squeeze reasserted itself in the market to boost prices there. "We're marking time waiting for the new crop corn to show up and see how we ramp up production," commented Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage, of Des Moines, Iowa, in speaking on tight supply availability in Chicago.
In contrast, lower Chicago Mercantile Exchange September corn futures and seasonal decline in blending demand is pressuring West Coast spot ethanol prices.
The end of the peak driving season, when gasoline demand declines and results in less ethanol blending, is also weighing on the market said Pfitzenmaier.
"So there's a question of how much this will be affecting demand," he added. "All that is impacting ethanol prices."
Argo Spot ethanol was talked at a $2.71 to $2.78 per gallon bid/ask, up 3.5 cents, while West Coast physical was pegged at $2.65 gallon, down 5.0 cents. New York Harbor ethanol was talked up 4.0 cents at $2.65 to $2.68 per gallon.
Myke Feinman can be reached at firstname.lastname@example.org.
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