U.S. spot ethanol prices in Chicago area extended lower in early afternoon trade Thursday after federal data showed domestic production rebounded above 900,000 bpd last week. This was after a sharp drop during the prior week. Total ethanol supplies were pushed up to a six-month high at 17.0 million bbl.
Midwest supplies increased 400,000 bbl to 6.6 million bbl, the highest since mid-April 2013. Today transfer ethanol at Argo hub near Chicago was talked at $1.83 per gallon, down 6.0 cents on the day. Chicago ethanol traded under Rule 11 for this week's fuel shipments to the East and Gulf coasts traded late at $2.015 per gallon, down 4.5 cents on the day, while northern California spot ethanol was offered at $2.12 per gallon, down 4.0 cents. "The market is getting crushed," said a trade source.
George Orwel can be reached at firstname.lastname@example.org
© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.