Ethanol Blog
Gulf Coast Ethanol Shipping Costs Rise on a Lack of Railcars
By
George Orwel
U.S. spot ethanol prices were higher Friday, climbing as tight supply and rising corn prices prompted short covering. A trader said unit trains to the Texas Gulf Coast were unavailable since most were being used either for oil shipping in the Midwest or transportation of ethanol to the East Coast.
As a result, the Chicago-to-Houston price spread expanded from a typical 10.0 cents to a 13.0 cents to 15.0 cents premium over Chicago area prices, reflecting the rising cost of shipping the product. The 13.0 cents spread is for rail transport while the 15.0 cents spread is for trucking.
George Orwel can be reached at george.orwel@telventdtn.com.
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