Spot Ethanol Spikes on Lower Supply,Corn Ends at 5yrs High
6/13 5:25 PM
Spot Ethanol Spikes on Lower Supply,Corn Ends at 5yrs High WASHINGTON, D.C. (DTN) --- Spot ethanol prices across regional trading hubs surged Thursday afternoon, with spot product at both New York Harbor and Argo terminal in Chicago rallying more than 7cts on the session, fueled by strong upward move in feedstock corn futures, while declining domestic ethanol supplies offered additional support. In futures markets, Chicago Board of Trade July corn contract advanced 12cts to $4.420 bushel, the highest price settlement on the spot continuous chart since June 2014. U.S. Department of Agriculture said this week domestic corn production is falling along with supply estimates due to weather-related planting disruptions in some Corn Belt states. DTN forecast shows more rain is expected in the western Midwest Friday and Saturday into Monday and heavy rains in the Delta Sunday through Wednesday. DTN Analyst Mary Kennedy noted "planting opportunities are nearly over and some areas that have planted will see more rain on soaked fields." The CBOT July ethanol contract settled 3.7cts higher at $1.549 gallon, while New York Mercantile Exchange July RBOB rebounded 3.38cts to finish Thursday's session at $1.7199 gallon, supported by gains in the oil complex. In physical markets, sources pegged prompt delivered ethanol at Kinder Morgan operated Argo terminal in Chicago at $1.5463 gallon, up 7.13cts on the session. Spot product shipped under Rule 11 rail terms was last discussed at $1.54, up 3.5cts. At the New York Harbor spot ethanol was indexed at $1.6850 gallon, 7.5cts higher on the day. Gulf Coast product moved a penny higher to finish the session at $1.6350 gallon. West Coast ethanol was pegged at $1.73 gallon, a steep 11cts higher from the previous session. Liubov Georges, 1.646.359.4088,, (c) 2019 DTN. All rights reserved.
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