U.S. spot ethanol prices had a rollercoaster ride in early session trade Thursday as traders weighed a mixed supply outlook against logistical problems that are plaguing shipments from the Midwest to coastal markets. "Cash ethanol prices have been bouncing around all morning," said a trader. He said flooding has slowed rail service in parts of the U.S. Midwest, causing delivery delays of three to four days. The situation is so bad the cost of trucking is now discounted compared to railcar cost. Prompt ethanol at the Argo hub traded between $2.175 and $2.25 gallon while July barge at the New York Harbor was talked between $2.29 and $2.35 gallon.
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