Ethanol Blog

Spot Ethanol Prices Drop on Supply, Brazilian Currency Woes

Spot ethanol prices tumbled in early trade Friday on the back of sluggish demand, excess supply and a plunge in the value of the Brazilian currency that could incentivize traders to import Brazilian ethanol into the United States.

"Brazilian real is now down 40% since last summer, and that helps [make it cheaper to buy]," said a trader. "No one believes there are March [plant] turnarounds scheduled, [and there's] still too much ethanol in the system," added another trader.

Prompt ethanol at Argo traded at $1.43 per gallon for a 3.0-cents loss. New York Harbor March delivered ethanol barges were talked at a $1.49 to $1.54 per gallon bid/ask range, and valued last at $1.53 per gallon for a 4.0-cents loss.

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

(CZ)

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MICHAEL SLIDER
5/6/2015 | 4:54 PM CDT
Prompt Ethanol at Argo traded $1.6750 today +4-cents on the day.