Ethanol Blog

Spot ethanol prices eased for Chicago rail and Houston during early trade, weighed down by perception the market is awash with supply while demand remains sluggish.

This bearish sentiment persists despite midweek data showing plant production fell to an 889,000 bpd six-month low, while demand rose 4.5% during the week profiled.

Sources said at 18.6 million bbl inventories remain near an 18-month high. Chicago ethanol traded under Rule 11 for this week transit to the East Coast and Gulf Coast at $1.61 and $1.58 per gallon, down 3.0 cents. Prompt ethanol railed to Houston was offered at a 7.0 cents premium to Chicago or $1.69 per gallon, down half a penny.

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

(ES)

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