Spot ethanol prices plunged again during an active selloff early Monday triggered by excess supply, soft demand and ahead of today's expiration of the Chicago Board of Trade May ethanol futures contract.
"More supply relative to domestic demand ... it takes time to rebuild the export demand," said a trader. "I think this is a buying opportunity," added another trader, with the market seen as oversold.
Prompt transfer ethanol at Argo is discussed at a $2.08 to $2.10 per gallon bid/ask trading range, down 6.0 cents. Today transfer ethanol barge at the New York Harbor traded twice at $2.10 per gallon, down 13.0 cents. Prompt northern California delivered ethanol traded at $2.23 per gallon, down 10.0 cents. June swaps traded at $1.96 per gallon, down 5.0 cents.
George Orwel can be reached at firstname.lastname@example.org
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