Spot ethanol prices rallied in Chicago and New York on Monday amid tight supply, rising demand and a federal report showing corn stocks and planting acreage were both smaller than expected.
"The nearby cash market has been on fire," said analyst Brendan Marshall. "(Blenders) in the East can't get any supply from the Midwest due to logistics ... demand will be higher moving forward."
Prompt delivered ethanol at the Argo supply hub near Chicago was talked at a $3.75 to $3.90 per gallon bid/asks spread, up 2.5 cents and the highest level on record.
Prompt delivered barge at the New York Harbor was talked at a $4.10 to $4.25 per gallon bid/ask spread, up 9.5 cents.
George Orwel can be reached at firstname.lastname@example.org
© Copyright 2014 DTN/The Progressive Farmer. All rights reserved.