The spot ethanol market again came under pressure from rising output from U.S. production plants Monday.
"Ethanol prices are falling, because domestic production over the past two to three weeks have been strong and they are likely to increase as we get more corn available," said analyst Tomm Pfitzenmmaier at Summit Commodity Brokerage in Des Moines, Iowa.
"Margins are good for ethanol producers ... the best I've seen in a while because corn is cheap. So even if ethanol prices have gone down some, it's not going to impact margins."
This week, Argo ethanol was talked at a $1.72 to $1.78 per gallon bid/ask spread while November New York Harbor ethanol barge was talked at a $2.01 to $2.06 per gallon bid/ask spread, down 0.5 cents on the session.
George Orwel can be reached at email@example.com
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