Spot ethanol prices plunged Tuesday amid rising ethanol supply and falling corn futures on the Chicago Board of Trade. The market is well supplied and they expect federal data due out Wednesday would show another supply build for the week-ended May 30.
"We're well supplied at Argo and in New York," said a trader. "We have decent supply and the railcars are available (for ethanol shipment). It wouldn't be a surprise to see another production increase because margins are good, there're no more maintenance issues and plants are running hard."
Prompt ethanol at the Argo terminal near Chicago was talked at a $2.29 to $2.33 gallon bid/ask down 4.5 cents, with prompt New York Harbor ethanol barges talked at a $2.30 to $2.37 per gallon bid/ask, losing 6.5 cents.
George Orwel can be reached at firstname.lastname@example.org.
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