Ethanol prices for prompt delivered product in California dropped a dime early Tuesday from Monday's record high, pressured by speculation spot prices have risen too high too fast, pricing out many buyers.
"The rally was unsustainable," said one trade source. The recent rally was underpinned by tight supplies linked to a lack of adequate railcar capacity. Northern California prompt delivered ethanol traded at $4.00 per gallon Tuesday, down 10 cents.
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