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US ethanol prices rebound on demand, delayed imports: trade
AFP
Houston
Petroleumworld.com 03 14 07
Spot ethanol prices firmed across the United States Tuesday on a
combination of higher demand and low prompt inventories, market sources said.Loading delays for several cargoes from the Caribbean and Brazil bound to
New York Harbor were also said to be catalysts in the price rise, as well as
lowstocks nationwide in the face of rising gasoline demand, market sources
said.The ethanol-buying frenzy began in the New York market late Monday, as
prices jumped 5 cents/gal to trade late Monday and early Tuesday morning at
$2.60/gal for 6,000 barrels available March 22-26 in New York Harbor, the
sources said. The ethanol is available on a free on board basis, meaning
insurance and freight costs are excluded from the price, the sources said.Bids for spot ethanol in New York were left at $2.60/gal Tuesday
afternoon, with no offers in sight, the sources said. This meant prompt
ethanol in New York was at least 67 cents/gal above the April NYMEX RBOB
futures contract, wider than the ethanol tax break of 54 cents/gal.Prices for New York ethanol also firmed for April, jumping 6 cents/gal
from Monday to trade at $2.52/gal, said sources.This rally in NY ethanol also prompted a run-up in prices for Chicago and
the US West Coast, with the gains in those two spot markets outmatched the
rise in NY ethanol Tuesday. Chicago ethanol in March jumped nearly 8 cents/gal
Tuesday, with bids seen as high as $2.45/gal, market sources reported.On the US West Coast, prompt deliveries in Northern California were
reported at $2.52 and $2.55/gal Tuesday, sources said, an 8.50 cents/gal jump
from Monday.--Suzanne Evans, suzanne_evans@platts.com
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Platts 13 1144 GMT 03 07
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