Argo Ethanol at 3mos High amid Demand Recovery, Stock DN
6/05 5:25 PM
Argo Ethanol at 3mos High amid Demand Recovery, Stock DN WASHINGTON, D.C. (DTN) -- Ethanol prices across U.S. trade hubs extended gains into Friday afternoon, lifting product value at the Argo terminal in Chicago to the highest trade since early March, finding support from rallying RBOB futures, and as blending demand gradually recovers and inventory is drawn down to a better than five-month low at 22.5 million bbl. U.S. ethanol demand continued higher for a fifth straight week through May 29, gaining 8,000 bpd to a ten-week high 720,000 bpd, although still 22% below year ago. This increase coincided with gasoline demand jumping over 4% in the most recent week to 7.549 million bpd, a 10-week high as well. U.S. ethanol production has risen to 765,000 bpd in the week reviewed, up from a historic low of 537,000 late-April, according to data from the Energy Information Administration. Recent increases in blending demand have prompted domestic producers to bring some capacity back on-line. "It's not nearly what it was pre-COVID, but every week it is getting a little better," said Jeanne McCaherty, CEO of Guardian Energy Management in an interview to StarTribute. Guardian Energy, Minnesota's largest ethanol plant, restarted production this week at three of its plants in southern Minnesota, bringing back the Janesville plant with processing capacity of 149 million gallons annually. The plant, which employs around 50 people, closed April 2. About 20% of all U.S. ethanol plants remain idled Friday, down from 30% on April 21, according to the Renewable Fuels Association, a trade group. Ethanol production had been running over 1 million bpd before the economic lockdown prompted by the spread of COVID-19. Liubov Georges, 1.646.359.4088,, (c) Copyright 2020 DTN, LLC. All rights reserved.
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN