Spot ethanol prices fell sharply in lackluster trade Tuesday amid easing supply concerns, with traders expecting weekly data due out Wednesday to show higher inventories in the United States for the week-ended Sept. 20, boosted by increase in domestic production.
The decline was sharpest at the Kinder Morgan-run Argo hub near Chicago on an easing short squeeze, where prompt ethanol was talked at a $2.22 to $2.26 per gallon bid/ask, down 40 cents on the day. Any-September transport Argo ethanol traded at $2.20 gallon, down 4 cents on the day. October New York Harbor barged ethanol traded early at $2.20 gallon, down 7 cents on the day.
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