Argo Slips as Corn Futures Sink 3.5% on Bearish Inventory
WASHINGTON, D.C. (DTN) -- Spot ethanol prices at the Argo terminal in
Chicago came under pressure Thursday after U.S. Department of Agriculture
reported higher-than-expected estimates of domestic corn supply, sending
feedstock corn futures sharply lower in late afternoon trading.
Chicago Board of Trade December corn futures ended the session 14cts lower
at $3.802 bushel after USDA reduced domestic corn stocks from 2.190 billion
bushels to 1.929 bb, a number located at the high end of trade expectations.
USDA also cut its demand estimate for corn by 90 million bushels, including a
150 mb reduction in the corn export estimate. USDA's estimate of world ending
corn stocks was reduced to 11.91 bb.
Following corn markets lower, CBOT November ethanol futures slipped 2.5cts
to settle at $1.471 gallon.
New York Mercantile Exchange November RBOB futures climbed 3.62cts to end
the session at $1.6233 gallon, while oil futures rallied on positive signs in
U.S.-China trade talks and supportive comments on supply restrictions from the
Organization of the Petroleum Exporting Countries.
In physical trade, ethanol spot prices at Argo terminal in Chicago dipped a
penny to $1.6450 gallon Thursday afternoon, while ethanol under Rule 11 rail
dropped 2cts to $1.60 gallon. In contrast, New York Harbor product added 4.5cts
to $1.77 gallon, with East Coast supply down 14.8% against year ago. Houston
ethanol was last discussed up 2.5cts at $1.6750 gallon, with Gulf Coast stocks
drawn down a steep 800,000 bbl last week government data shows. California
product was pegged at $1.7850 gallon on a 2cts gain from the prior session.
Liubov Georges, 1.646.359.4088, firstname.lastname@example.org, www.dtn.com. (c)
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