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.
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Prompt ethanol at Argo traded at $1.43 gallon for a 3.0cts loss. New York Harbor March delivered ethanol barges were talked at a $1.49 to $1.54 gallon bid/ask range, and valued last at $1.53 gallon for a 4.0cts loss.
George Orwel can be reached at george.orwel@telventdtn.com.
(CZ)
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