Spot ethanol prices fell again in early trade Thursday after federal data Wednesday showed excess supplies, with analysts expecting the downtrend to continue for some time. This is because corn prices at four-year lows were leading to more domestic ethanol production.
Prompt Argo ethanol traded at $2.09 per gallon, down 3.5 cents, while August New York Harbor ethanol barge traded at $2.215 per gallon, down 1.0 cents. "With (corn) prices this low, ethanol plants are buying (feedstock) through September," said analyst Brendan Marshall at North Star.
"Ethanol is very profitable now, so this week stocks are up but most of it is remaining here. The export market is down. We may be exporting some to South America, but not a lot to Europe."
George Orwel can be reached at firstname.lastname@example.org
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