Supply shortages and rising demand continued to push spot ethanol prices higher early Friday ahead of the weekend, with prompt delivered ethanol at Argo hub near Chicago bid at a $2.90 per gallon two-month high, while November New York Harbor is pegged at a $3.00 per gallon two-year high.
Trade sources said values would climb further today, with Argo gaining for the 12th straight session. Midweek data showed supplies near a record low and trade sources said too many buyers were looking to meet short-term product needs while storage tanks in New York and Argo were nearly running dry.
Moreover, U.S. buyers were competing with foreign demand, the traders added. "We are currently exporting out of the U.S.," said a source.
George Orwel can be reached at firstname.lastname@example.org.
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