Ethanol Blog

Spot Ethanol Prices Tumble on Rising Domestic Supply

By  George Orwel

U.S. spot ethanol prices fell sharply in early Wednesday trade amid easing supply concerns after EIA data showed total U.S. fuel ethanol inventories climbed another 300,000 bbl or 2.1% last week to a 15.4 million bbl six-week high, as domestic production spiked to the highest level since the start of 2012.

New York Harbor barged December ethanol was pegged 1.5 cents lower at $3.42 to $3.45 per gallon bid/ask while today transfer ethanol at Argo terminal near Chicago traded at $2.45 per gallon and was last seen at a $2.40 to $2.44 per gallon bid/ask spread, down 10.5 cents.

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

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Eddy Lahens
12/11/2013 | 2:54 PM CST
"Prices TUMBLE" "Production Spike" " 6-week High inventory" Allow a bit of comprehension. on Prices : NY spot is at $3.42 a gallon! Obviously Supply is not enought to meet total market demand. More demand from NY will drive more prodcution On Inventory: On the other side of the country, West as opposed to NY, inventory was super low ( 11 day supply versus 18 daysfor the nation). ALL the 300K bump went to the West. Does notthing for the tight issue in NY. On "6-Week high inventory'' 15.4M with a current refiner mix rate of 837K is 18 days worth. A) Not well distributed ( NY is short) B) Normal level is 20-21 days C) Winter conditions might cause delay in delivery. Prices Tumbling": a bit of exageration when NY is paying a high price for spot gallons.