Ethanol Blog
West Coast Spot Ethanol Prices Spike on Short Squeeze
Spot ethanol prices posted strong gains Thursday amid talk of a short squeeze on the West Coast, a source said, with additional support for ethanol coming from a gasoline futures rally, higher corn futures and expectation blending demand will recover.
This comes a day after data showed U.S. ethanol inventories rose 697,000 bbl last week to a seven-week high of 21.342 million. Sources said this week transfer ethanol in northern California traded at $1.80 per gallon before being bid at $1.81 per gallon for an 8.5-cents gain for the session.
Prompt Arizona spot prices traded at $1.80 per gallon for an 8.0-cents gain. New York Harbor May delivered ethanol barges traded at $1.73 per gallon, up 3.5 cents on the day so far. April delivered ethanol at Argo was talked at a $1.63 per gallon, up 2.0 cents on the day.
George Orwel can be reached at george.orwel@telventdtn.com
(ES)
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]