Spot ethanol prices rallied at midday, powered higher by a bullish federal report showing ethanol inventories in the United States plunged to a better than 2 1/2-month low last week while demand rose 1.7% from the prior week.
"Ethanol prices have been holding well relative to gasoline and corn," said a trade source. "Everything is firmer," added another trader.
Prompt ethanol at the Argo traded at $2.30 per gallon, up 8.5 cents on the day. August ethanol barge at the New York Harbor traded at $2.35 per gallon, up 11.5 cents on the day. Prompt delivered Northern California ethanol last traded at $2.46 per gallon, up 7.0 cents.
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