Spot ethanol prices rallied this afternoon after U.S. data showed domestic ethanol stocks plunged to a two-month low, with supplies along the East Coast at a record low. A lack of adequate railcar capacity has limited deliveries to the East Coast while backing up supply in the Midwest. The Midwest logjam is clearing up fast, with data showing supplies in that region fell 400,000 bbl to 6.5 million bbl last week.
On CBOT, Chicago ethanol futures soared 9.5 cents to $2.375, a better than three-month high while Argo in-tank transfer ethanol was valued at $2.40 per gallon, up 6 cents on the day. New York Harbor March ethanol was pegged at $3.40 per gallon, up 3 cents.
George Orwel can be reached at email@example.com.
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