Ethanol Blog
George Orwel DTN Energy Reporter

Tuesday 01/07/14

Chicago Ethanol Prices Rally as Cold Shuts Argo Terminal

Spot ethanol prices rallied in the Chicago physical and paper markets on Tuesday afternoon amid concerns about supply and severe weather conditions in the Midwest. Kinder Morgan declared a force majeure at its ethanol terminal in Argo, near Chicago, on Jan. 5 because of an arctic blast that affected operations.

Kinder Morgan said it expects to resume operations on the morning of Jan. 8. There are no products going into or coming out of the Argo terminal. However, a trade was reported at $2.18 per gallon for Jan. 13 delivered physical ethanol, while prompt delivered product was talked at a wide $2.18 to $2.28 per gallon bid/ask spread, up 2 cents for the day. With Argo shut, the market for Chicago ethanol traded under Rule 11, which is for shipments to the East and Gulf coasts, is "on fire," said a trader, with bids at $2.36 per gallon.

George Orwel can be reached at george.orwel@telventdtn.com

(ES)

Posted at 2:56PM CST 01/07/14 by George Orwel
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