Ethanol spot prices surged in early trade as weather-related delays continue to slow empty railcar returns to the Midwest for suppliers to refill for the next delivery.
"Cars are being delayed for (weather-related) reasons all over the place," said a spokesperson for KAG Ethanol Logistics of Canton, Ohio this morning. "It just seems like it's taking a long time," she continued. "We're hoping that it clears up soon."
"All the coasts (prices) are on fire now for lack for railcars," said an ethanol trader this morning.
"Cold has shut down rails in Minnesota," added an ethanol analyst this morning.
Spot prices surged 23.0 cents per gallon to $2.95 along the New York Harbor, gained 11.5 cents to $2.70 for the Pacific Northwest and were up 11.0 cents at a $2.20 to $2.22 bid/ask spread for the Argo hub near Chicago.
Myke Feinman can be reached at email@example.com
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