Spot ethanol prices were under heavy pressure Wednesday after U.S. data confirmed excess supply and weak demand. Energy Information Administration said ethanol stocks soared 800,000 bbl to a better-than 14-month high at 18.3 million bbl in the week-ended May 30.
Production rose 11,000 bpd while implied demand tumbled 36,000 bpd for the week. "Finally plants are running hard and export demand is going to take long to get back after last winter," said a broker.
Prompt ethanol at Argo traded $2.21 and $2.20 per gallon, down 9.0 cents, with New York Harbor ethanol pegged at $2.30 per gallon, down 6.0 cents. Spot ethanol prices in California were seen down 15.0 cents at $2.63 per gallon.
George Orwel can be reached at firstname.lastname@example.org
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