Ethanol Blog

Spot ethanol prices climbed again Friday as buying interest increased while gasoline and corn futures rallied ahead of the weekend break. Traders are worried current excess ethanol supply would be massively drawn down in the weeks ahead if U.S. production declines further while blending demand is expected to increase ahead of the summer peak driving season.

Midweek federal data showed implied gasoline demand picking up, while the March RBOB contract is trading at a 21-cents discount to April ahead of its expiration Friday. Prompt Argo ethanol traded 3 cents higher at $1.40, while New York Harbor barges rose 3 cents to 1.53 per gallon. Northern California ethanol changed hands at $1.61 per gallon for an 8-cents gain.

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

(ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.