Ethanol Blog

Spot ethanol rallied on pre-holiday short covering after fresh federal data confirmed demand for prompt product is running ahead of supply.

The Energy Information Administration said ethanol stocks were drawn down to a one-month low even as demand spiked to a one-month high for the week-ended Nov. 21. The bullish data comes on the eve of Thanksgiving Day holiday, with markets expected to be closed or thin until next week.

The market was active today. Prompt ethanol at Argo traded a couple of times at $2.85 per gallon, a better-than seven-month high, up 12.0 cents on the day. November Houston ethanol barges were valued at $2.60 per gallon for an 8.0-cents gain, while prompt California barges were seen $2.80 per gallon for an 8.0-cents gain.

George Orwel can be reached at george.orwel@telventdtn.com.

(ES)

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