Spot ethanol traded higher in Chicago and New York this afternoon amid speculation a shortage of natural gas may have forced at least two ethanol plants in Wisconsin to cut runs or shut down, potentially reducing domestic production.
Back-to-back arctic blasts have led to a sharp drawdown of U.S. natural gas supply, with the situation aggravated in the upper Midwest by a pipeline explosion two days ago in Canada.
"Swaps are rallying hard because of natural gas," said a trader. "I heard the problem was caused by the pipeline explosion," added another trader.
Prompt ethanol at Argo hub near Chicago traded early trade at $1.82 per gallon, up 2.0 cents on the day. February delivered ethanol in the New York Harbor traded at $2.05 and $2.06 and was last talked at a $2.08 to $2.10 per gallon bid/ask, up 6.5 cents on the day.
George Orwel can be reached at firstname.lastname@example.org
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